Government’s limp data centre regulations will cost working families
Government’s limp data centre regulations will cost working families - The Labour Party
Labour’s climate spokesperson Ciaran Ahern has expressed deep concern at this Government’s commitment to decarbonising data centres.
In response to a Parliamentary Question from Deputy Ahern, Minister Darragh O’Brien said that Government’s policy statement on data centres ‘encourages’ implementation of decarbonised energy sources.
Labour is calling on Government to strengthen regulations to guarantee that data centres are powered with local, renewable and sustainable energy to reduce emissions, protect our energy grid and ensure household bills aren’t impacted by increased demand.
Deputy Ahern said:
“It’s nowhere near good enough for Government to simply ‘encourage’ sustainable energy use by data centres. We’re talking about the infrastructure that already accounts for more than one fifth of electricity consumption in Ireland, and this is only going to grow to 30% in the next few years.
“Minister O’Brien needs to wake up and realise that he responsible for not only ensuring the protection of our planet, but also the protection of people’s pockets when it comes to the cost of energy bills.
“There are already 89 data centres in Ireland, with another 11 in development and 30 with planning permission. As Ireland’s data centre infrastructure expands, this will inevitably to lead to higher bills for working families as more pressure is put on our already struggling electricity grid and gas network.
“The CRU must be given powers to mandate data centres to generate their own power using fully renewable sources so as not to put even more pressure on the grid.
“The impact of the Government’s greenlighting of more data centres must also be considered in the climate context. These are highly-emitting pieces of infrastructure. The average annual emissions from a data centre is equivalent to about 4,500 cars. It’s unconscionable that the Government would allow this to continue at a time when we know we could be facing up to €26 billion in fines for missing our climate targets.”
“I recognise the importance of data centres in our industrial infrastructure and enabling us to use our phones and the internet and other everyday technology, but there’s a way of doing this right.
“Earlier in the year the CRU published draft regulations that included mandatory localised energy sources, which is welcome, but it said nothing about those sources being renewable. When questioned on it, the CRU said it wasn’t in their power to introduce such an obligation.
“This needs to be addressed urgently. We’ve seen enough regressive steps taken by this Government in terms of climate policy already – let’s not add another to the list. The CRU must be given the necessary powers to require data centres not only to generate their own energy, but to make sure that they won’t add to our carbon emissions any further.”
ENDS
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For Written Answer on : 01/07/2025
Question Number(s): 172 Question Reference(s): 35505/25
Department: Climate, Energy and the Environment
Asked by: Ciarán Ahern T.D.
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QUESTION To ask the Minister for Climate; Energy and the Environment how the 14 data centres currently under construction and the 40 data centres which have received planning permission in the State will be powered; the amount of energy and water that will be used on an annual basis by the 14 data centres currently under construction and 40 data centres which have received planning permission; whether the electricity network has capacity to supply energy to the additional 40 data centres which have received planning permission; the amount of that energy that will come from sustainable sources; the amount of the energy that will come from gas or other fossil fuels; and if he will make a statement on the matter.
REPLY
The Programme for Government commits to addressing these challenges by scaling up investment in critical infrastructure and in our electricity grid and committing to allow data centres that contribute both to economic growth and efficient grid usage, by enhancing the use of renewable energy, energy efficient technology and energy effective solutions.
However, Government is aware of the challenges of finding a balanced approach to facilitating additional demand by data centres while also ensuring the competitiveness, sustainability and security of supply of our energy system. The Government’s policy statement on Data Centres already outlines the principles for sustainable data centre development and encourages implementation of decarbonised energy solutions and to increase energy and water efficiency.
My Department is in regular engagement with the Commission for Regulation of Utilities (CRU) and system operators working to address these challenges around facilitating data centre connections. The proposed decision by CRU on the Large Energy Users connection policy will apply to data centres and will direct System Operators to continue assessing connection applications aimed at protecting security of supply and mitigating negative effects to the local electricity network in constrained areas impacting other customers’ connections, including households and other commercial customers. Following a public consultation CRU are in the process of analysing extensive feedback received.
Planning, building, safely operating and maintaining the electricity and gas system are functions which are assigned to the respective Distribution and Transmission System Operators, who are independent of me as Minister in the exercise of their respective functions and for which they are accountable to the independent regulator, the CRU. EirGrid and GNI regularly review their forecasted electricity and gas demand for the next ten years through the Generation Capacity Statement and All-Island Resource Adequacy Assessment and the GNI Network Development Plan. Similarly, the CRU regularly reviews electricity and gas connection policies to ensure they align with national policy.
As such the Deputy may wish to engage with these organisations directly, including GNI, ESBN and EirGrid who may be contacted via email at [email protected], [email protected] and [email protected].