Labour demands climate proofing of data centres
Labour demands climate proofing of data centres - The Labour Party
Labour’s Climate Spokesperson Ciarán Ahern TD will tomorrow launch the Electricity Regulation Bill 2025 at Leinster House which will give the Commission for the Regulation of Utilities (CRU) the legal authority to require renewable on site power generation from data centres and other large energy users. He said this is urgently needed because data centre energy demand has spiralled out of control, is resulting in household bill inflation and is undermining Ireland’s climate targets. He called on Government to back the Bill without delay to protect ordinary households from paying the cost of data centre expansion.
Deputy Ahern said:
“Ireland’s electricity grid is being stretched to breaking point and one industry is overwhelmingly responsible. Data centres now consume more power than every urban household in the country combined. In 2015 they accounted for 5 per cent of Ireland’s electricity demand. Today it is above 20 per cent and the regulator projects it will hit 30 per cent early in the next decade.
“Households are paying for this runaway demand. Government is investing billions in grid upgrades and new capacity. These costs do not fall on multinational tech giants. They fall on ordinary billpayers through higher network tariffs. A confidential memo from the Department of Public Expenditure last year spells it out. Soaring demand, largely due to data centres, is driving the need for new generation and reinforcement. Families are footing the bill while the tech sector benefits.
“The regulator says it cannot legally insist on renewable generation. The Climate Action Act sets a broad objective but does not give clear authority to mandate specific emissions reduction measures. This is a glaring legislative gap. Unless we fix it, Ireland’s entire climate strategy will be undermined. My Bill closes that gap. The Electricity Regulation Bill 2025 gives the CRU explicit legal authority to require renewable on site generation and to impose emissions reduction or offsetting obligations on large energy users. If enacted, it ensures the power that data centres generate is clean and sustainable.
“Labour has long called for a moratorium on new data centres until we can be sure they will not strain the grid, inflate household bills or derail climate targets. We recognise the role of the tech sector. Data centres support jobs, tax receipts and services many of us use every day. The question is not whether data centres should exist. The question is whether we will manage their growth responsibly, sustainably and in the interests of all of us.
“We cannot pretend that limitless expansion is compatible with a functioning grid or credible climate action. Our national climate objectives and the protection of households must be built into every part of industrial strategy. Government must now support this Bill and give the regulator the legal tools it needs to insist on renewable generation. It is time to act in the public interest and ensure that data centres contribute to a future that is climate proof, energy secure and fair to the people who ultimately pay the bills.”
Link to the full bill: https://labour.ie/wp-content/uploads/2025/11/B53.125D-proof-sent.pdf