Energy crisis must not block housing delivery

29 May 2025

Energy crisis must not block housing delivery - The Labour Party

Labour’s Climate Spokesperson Ciarán Ahern TD has today called for an immediate moratorium on the construction of new data centres, following a warning from secretary general at the Department of Environment, Climate and Energy, that Ireland will be forced to choose between building new homes and expanding data centre capacity. Deputy Ahern is calling on the Taoiseach to finally listen—not just to experts and the opposition, but to his own officials—and put in place a robust, enforceable framework to protect Ireland’s climate and energy security.

Deputy Ahern said:

“This latest warning from one of the Government’s own top officials should be a wake-up call. Labour has been raising concerns about the scale of data centre development for years. The Taoiseach has ignored the opposition. Will he now ignore his own officials?

“The facts are clear: data centres are responsible for 21% of Ireland’s electricity use today, and that figure is only going to rise. These are major industrial energy consumers, and their rapid expansion has huge implications for our climate targets, for our energy bills—and now for our ability to build homes.

“Let me be clear: Labour is not against data centres. They are an important part of our industrial infrastructure and will continue to be. But they cannot be allowed to grow unchecked at the expense of our environment, our energy security, or our national housing targets. If we’re being forced to choose between homes and data centres, then something has gone badly wrong.

“I would again urge the Government to introduce a moratorium on the construction of new data centres until we have a strong, enforceable framework in place. We must ensure that any new centres do not jeopardise our climate obligations or our ability to provide energy to homes and businesses. This means legislation, regulation, and an honest conversation about priorities.

“We in Labour are again calling on the Taoiseach to take action. He must listen to the growing number of experts and officials raising the alarm. The Government must halt new data centre construction until we can be sure they will not endanger our housing, climate, or energy security goals.”

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