Taoiseach defends data centres as Social Democrats question climate ambitions

Taoiseach Leo Varadkar has said a solution to the high energy consumption of data centres is to make sure that they are powered through renewable energy, as opposition TDs questioned the government’s belief in climate science.

He was responding to a question from Social Democrats leader Holly Cairns, who pointed to data released from the Central Statistics Office on Monday which showed that the percentage of metered electricity consumed by data centres rose from 5 per cent in 2015 to 18 per cent in 2022.

She said the figures show consumption of electricity from data centres increased by more than 30 per cent last year.

“The amount of electricity demand from data centres was almost entirely matched by the growth in electricity from wind generation in 2022. So in other words, we’re running to stand still in decarbonising our energy system,” Cairns said.

She said her party called for a moratorium on new data centres two years ago. While there is no such moratorium, Leo Varadkar said that there had been no new data centre connection approved by EirGrid in just under two years.

Speaking during leaders’ questions, he said applications for new centres are taken on a case-by-case basis with consideration for issues including job creation. The Taoiseach said data centres are important for the economy as 100,000 people work in the tech sector across the country.

“In relation to our emissions, deputy, far from standing still, our electricity-related carbon emissions actually went down last year, not up. So, not standing still,” he said.

He said the trend was “going in the right direction but by no means fast enough”.

In addition to renewable energy, Varadkar said a solution for high energy consumption of data centres is to make sure they have their own back-up generation “so that in the event that we run into an issue around security of supply, far from being a problem, they can be part of the solution, generating electricity and selling it into the grid”.

Holly Cairns said there are proposed data centres in the planning process which would bring the sector’s consumption of the grid capacity up to 30 per cent by 2030.

In addition, Cairns criticised the government’s climate action plan by stating that even if it was fully implemented, emissions will decrease by only 29 per cent rather than the 51 per cent target for 2030.

She questioned whether the government believes in climate science, given the decisions it has made including the “extraordinary growth of data centres”.

Varadkar replied: “Climate change is real, it’s happening. It’s a clear and present danger. It’s man-made and we need to act to reverse it. We have to be the generation that turns the tide when it comes to climate change.”

Cairns also accused Varadkar of “scaremongering” over the EU Nature Restoration law.

The European Commission says the law is a key element of the EU Biodiversity Strategy, which calls for binding targets to restore degraded ecosystems, in particular those with the most potential to capture and store carbon and to prevent and reduce the impact of natural disasters.

The proposals include targets for the restoration and rewetting of drained peatlands.

Cairns said: “I think people are genuinely worried about politicians talking about both sides of their mouth on this issue. It’s too important.

“They want climate action, not a combination of greenwashing and scaremongering.”

Varadkar said the law is currently only a proposal.

“There are different proposals currently being negotiated. I am absolutely convinced that we can agree an EU Restoration Law that will help us when it comes to reversing biodiversity loss, but I believe it should be realistic.

“Targets that are set should be realistic and we should implement any restoration law in a way that doesn’t impose compulsory obligations on Irish farmers.

“It is my very strong view that any rewetting of privately owned farmland should be voluntary and be properly remunerated and compensated by government and the European Union.”