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Government To Lift Data Centre Ban Amid Energy Concerns And AI Ambitions

Tuesday, 13 January 2026 10:42

Cabinet will consider the limited data centre development in areas with spare energy capacity.

The Government is set to lift the ban on new data centres. 

A plan going to Cabinet this morning would allow limited development in areas where there is energy grid capacity.

For the last five years there have been restrictions on data centre development amid concerns about how much juice it's taking from the energy grid.

Those centres currently demand at least a fifth of all power consumption in Ireland - set to grow closer to a third by the end of the decade.

The embargo on new development is to be lifted under a 17 point plan for growth of the sector which is going to Cabinet this morning.

There's a belief the future of Ireland's economy will hinge on AI - which requires further date centre development.

With that Enterprise Minister, Longford-Westmeath TD Peter Burke will also ask Government to transpose new EU laws grading the risks of different types of AI development. 

Meanwhile Justice Minister Jim O'Callaghan will bring new measures to Cabinet restricting the right of those granted asylum to bring family members to Ireland.

While Minister Patrick O'Donovan will approve renewed money for the An Post Network at a rate of €15 million a year, up €5 million per annum.

Minister Burke says it's about balancing that with the need to invest in the future: 

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