Written answer
Departmental Reports
44. Deputy Roderic O'Gorman asked the Minister for Enterprise, Tourism and Employment the reason a report commissioned by his Department (details supplied) did not include a section on the potential for higher electricity prices due to rising data centre demand, despite the terms of reference suggesting it should. [66926/26]
Comment on this
The purpose of the study commissioned by my Department was to address a knowledge gap in relation to the economic benefits of data centres to Ireland. Prior to this work, there had been limited evidence available on the scale of the sector's contribution to employment, GVA, tax revenues and wider economic activity in Ireland.
Accordingly, the Terms of Reference for the study set out the following aims:
• to determine the economic impacts and wider societal benefits arising from existing and planned (to 2030) data centres in Ireland; and
• to explore options for evolving the data centre landscape beyond 2030 with a view to optimising future economic and societal benefits.
The report delivers on these aims by quantifying the GVA, employment and tax revenues generated through both the construction and operation of data centres, while also assessing the wider economic activity enabled by data centre infrastructure located in Ireland. It further examines the broader societal and economic benefits associated with the sector, including its contribution to Ireland’s digital economy, its role in supporting foreign direct investment and exports, and its potential contribution to the energy transition.
In addition, the study considers how Ireland’s data centre landscape could evolve beyond 2030. Through a range of future scenarios, it assesses different growth pathways and considers economic, spatial, infrastructure and environmental aspects.
The terms of reference for the study included a number of guidance notes designed to encourage tenderers to propose as broad and comprehensive an approach to the study as possible within the available resources. A reference to electricity prices was included as a footnote within 12 pages of guidance notes contained within the Request for Tender documentation. These guidance notes were intended to inform bidders in developing their proposals and were not prescriptive requirements regarding the final content of the report.
Tenders were assessed under the Most Economically Advantageous Tender (MEAT) process, with the contract awarded on the basis of the methodology and approach put forward by the successful bidder.
The final scope of the study reflected the methodology and scope proposed by the successful tenderer and agreed through the procurement process. A specific assessment of electricity price impacts was not included within the scope of the successful tender.
Again, to reiterate, the primary purpose of the study was to assess the economic value of data centres to Ireland and to examine options for evolving the data centre landscape beyond 2030, and that is what the study delivered.