Minister for Transport, Climate, Energy and the Environment Darragh O’Brien has defended the Government’s approach to managing the growing energy demands of data centres, insisting that the issue is being carefully planned and regulated.
His comments came in response to a new United Nations report examining the environmental impact of the rapid expansion of artificial intelligence, which cited Ireland as a cautionary example because of the significant electricity demands associated with data centres, reports Breaking News.
According to the report, data centres currently account for around 21 per cent of Ireland’s total electricity consumption. That figure is projected to rise beyond 30 per cent over the coming years as facilities expand to support the growing processing requirements of AI technologies.
The report also noted concerns that proposed measures allowing data centres to generate some of their own electricity could lead to increased fossil fuel consumption, reports Breaking News.
Speaking on RTÉ’s Morning Ireland, O’Brien said the Government had already introduced a structured strategy through its Large Energy User Action Plan to manage future demand from major energy users, including data centres.
He explained that the policy adopts a plan-led approach to new grid connections and requires any future data centre seeking a connection agreement to secure at least 80 per cent of its energy requirements from new renewable energy sources, reports Breaking News.
O’Brien said the challenge is one of balancing environmental considerations with economic growth and technological development.
He argued that Ireland must decide whether it wants to remain at the forefront of emerging technologies or risk undermining a sector that contributes significantly to employment and investment across the economy.
The minister stressed that the Government is not seeking to halt technological development but instead to ensure that expansion occurs in a planned and sustainable manner, with strict conditions attached to future energy use, reports Breaking News.
He said the requirement that at least 80 per cent of a new data centre’s energy come from newly developed renewable sources is a key part of that strategy.
O’Brien also highlighted the economic contribution of the sector, noting that the data industry generated approximately €2.2 billion for the Irish economy in 2024, the most recent year for which complete figures are available, reports Breaking News.
He added that many European countries and international partners view Ireland’s success in attracting technology companies and data centre investment with admiration.
According to the minister, substantial foreign direct investment has flowed into Ireland through technology firms and infrastructure projects linked to advanced digital services and emerging technologies.
He said the broader information and communications technology sector supports approximately 180,000 jobs across Ireland, while around 20,000 positions are linked directly to data centres and their associated activities, reports Breaking News.
O’Brien also noted that approximately 3,300 people were directly employed in Irish data centres during 2024.
He rejected suggestions that Ireland should stop facilitating data centre development, arguing that such a position would be short-sighted given the sector’s contribution to economic growth, innovation and employment.
The minister concluded by saying that while concerns about electricity demand are valid, the Government’s focus remains on managing that demand responsibly rather than preventing investment in technologies that are becoming increasingly important to Ireland’s future economy, reports Breaking News.
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