There has been pressure on electricity supply in recent months.
EirGrid, the operator of the national electricity network, has stopped talks with dozens of data centre promoters because of curbs on the sector to ease pressure on power supplies.
The Environment Minister has welcomed the move, saying it was 'right' to halt talks with potential data centre promoters.
With some 70 data centres already in the State, the sector has emerged as a huge driver of electricity demand at a time of constraints on its supply.
Increased data centre demand in the four years to 2021 was equal to adding 140,000 households to the grid each year.
However, the data centres operating in Ireland, are seen as vital to the technology sector, especially by IDA Ireland which has pushed back against the move.
It argues that data centres are integral to the technology sector, which employs about 140,000 people here.
Environment Minister Eamon Ryan thinks its the right call:
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