Dáil Éireann Debate, Thursday - 11 June 2026
20. Deputy Roderic O'Gorman asked the Minister for Climate, Energy and the Environment if his attention has been drawn to a recent United Nations University report which references Ireland as a cautionary example of local grid stress from concentrated digital infrastructure due to the proliferation of data centres; and if he will make a statement on the matter. [44343/26]
Amharc ar fhreagra41. Deputy Paul Murphy asked the Minister for Climate, Energy and the Environment his views on the use of Ireland as a cautionary tale of data centre growth in a recent UN report; and if he will make a statement on the matter. [44546/26]
Amharc ar fhreagraI propose to take Questions Nos. 20 and 41 together.
Data centres are important for Ireland’s economic and digital future and are a key part of our value proposition for foreign direct investment. Data centres bring wider economic benefits — tax revenues, employment, broader digital infrastructure value and significant support and linkages provided to other high value sectors of the economy.
The recent KMPG study on data centres, undertaken on behalf of the Department of Enterprise Tourism and Employment, reports that there are 19,500 directly employed in the industry. As detailed in the Large Energy Action Plan (LEAP), Ireland’s technology sector, underpinned by digital infrastructure in data centres, accounted for employing 182,900 people in Q4 2024 - equivalent to 7% of Ireland’s total workforce. Unlike other European countries that have heavy-industry bases, Ireland’s industrial electricity demand is primarily concentrated in our digital economy – this is our core energy-intensive industry.
I note the contents of the UN University report on AI energy, referenced by the Deputy, particularly the comments on the need for responsible and informed capacity planning of the power system. The Government has for a long time recognised that data centres and their energy consumption need to be managed and planned appropriately.
The Government's LEAP published in January 2026, sets out a ‘plan-led’ approach for very large and energy intensive investments, which due to their scale and energy consumption benefit from coordinated national infrastructure planning. It is a medium-term plan that will enable Ireland to capture next generation investment in energy intensive industries, and unlock significant associated economic and employment opportunities.
The CRU’s Large Energy Users Connection Policy was published in December 2025. This sets out a pathway for new large demand connection applications to the electricity system which addresses risks in relation to security of supply and system constraints and promotes renewable energy targets, while minimising, where possible, the impact on national carbon emissions.
This policy and regulatory framework is being reinforced by an unprecedented investment in Ireland’s electricity network infrastructure, supported by a €3.5bn equity investment by Government in the electricity system operators.
Future industrial development can and should be aligned with Ireland’s continued green and digital transitions, robust energy security, infrastructure delivery, and affordability of energy for households and businesses throughout the country. This Government will continue to work to ensure that this is realised.
