Dáil Éireann Debate, Wednesday - 10 June 2026
16. Deputy Barry Ward asked the Minister for Climate, Energy and the Environment the position regarding any research ongoing within his Department into the potential use for heat generated by data centres as a source of energy; and if he will make a statement on the matter. [44334/26]
Amharc ar fhreagraThe Sustainable Energy Authority of Ireland (SEAI) has in recent weeks published Ireland’s National Comprehensive Heating and Cooling Assessment (www.seai.ie/data-and-insights/heating-and-cooling-assessment), which was a requirement under Article 25 of the Recast Energy Efficiency Directive (EU 2023/1791) (EED). The Assessment is a comprehensive report on Ireland’s current usage of heat, and the potential sources of renewable heat which will help Ireland to meet its renewable energy targets and reduce Ireland’s carbon emissions.
On page 51 of the Assessment, Table 6 sets out that there are 1,584 GWh of recoverable waste heat currently being generated by data centres in Ireland, which could be used to fuel district heating schemes. On page 59 of the Assessment, Table 12 sets out an estimate of the cost of waste heat recovery from these data centres, with a capital expenditure cost of €246,000 per MW, and operational expenditure of €7.70 per MWh. However, the assessment also notes that while data centres show great potential for waste heat recovery in Ireland, these calculations carry high uncertainty and hence more public information regarding individual site operation is required to further disaggregate the waste heat potential at a more granular level. The report also notes that data centres produce some of the lowest-grade heat of all sources considered, and as such, their waste heat often requires the most energy to upgrade for use in heat networks.
Article 26 of the EED requires that data centres with a total rated energy input exceeding 1 MW must utilise the waste heat or other waste heat recovery applications unless they can show that it is not technically or economically feasible after conducting a cost-best analysis. My Department is currently in the process of transposing the Energy Efficiency Directive, which will include the transposition of these requirements into Irish law.
The Tallaght District Heating Scheme is a working example in Ireland of a data centre that is capturing its waste heat which is then being used in a district heating system. The scheme, operational since early 2023, is managed by Heat Works, Ireland’s first not-for-profit energy utility, fully owned by South Dublin County Council. It captures waste heat from an Amazon data centre, which is then upgraded via large-scale heat pumps to provide hot water at 85°C through a network of highly insulated pipes.
This system is the first of its kind in Ireland and has so far demonstrated significant environmental benefits. In 2024 alone, it saved 1,265 tons of carbon dioxide, contributing to Ireland’s decarbonisation goals. To date, the network has generated almost 6,000 MWh of energy, with a projected lifetime generation of 270,000 MWh over 30 years. By efficiently reusing waste heat, the scheme reduces reliance on fossil fuels and optimises recyclable energy, establishing Tallaght and South Dublin County Council as leaders in local energy action.
My Department is also progressing the drafting of the Heat (Networks and Miscellaneous Provisions) Bill, which will provide a legislative framework for the further development of district heating in Ireland, which will further enable the capture and utilisation of waste heat. My Department and the SEAI will continue to progress research and work on this topic into the future.
