Households paying the price for Government’s data centre obsession – Ahern
Households paying the price for Government’s data centre obsession – Ahern - The Labour Party
A new report from Friends of the Earth has found that energy demand from data centres has cumulatively added €750 million to household electricity bills since 2015, and could add a further €1.5 billion over the next decade. Speaking in the Dáil today, Labour’s Energy Spokesperson Ciarán Ahern TD condemned the Government’s open-door policy towards data centres, warning that ordinary households are being forced to shoulder the costs of unchecked expansion while already struggling through the cost of living crisis.
The report comes on the same day that Electric Ireland announced it will increase residential electricity prices by 8% and gas prices by 7.7% from 1 July. The utility company, a subsidiary of the ESB Group, is the latest provider to announce major price increases, adding further pressure on households already facing spiralling living costs.
Deputy Ahern said:
“This report highlights the growing inequities in our energy system. Data centres enjoy discounts on the price they pay in electricity and network costs while the pressure from their ever-increasing energy demand is leading to higher bills for ordinary households and small businesses.
“Today’s announcement from Electric Ireland will be deeply worrying for families already struggling to keep up with rising costs. An 8% increase in electricity prices and a 7.7% increase in gas prices will pile even more pressure on workers, families and pensioners who are already stretched to breaking point.
“Household billpayers are, in effect, subsidising the tech billionaire oligarchs’ data centres as they soak up an incredible amount of our energy.
“Government insists that data centres are to be an important part of our industrial strategy, but I cannot accept this hugely profitable private industry imposing significant costs on ordinary households while failing to pay their fair share.
“People across the country are already struggling to keep the lights on and heat their homes. The additional costs arising from the Government’s reckless approach to data centre expansion are making an already severe cost of living crisis even worse.
“We also need to recognise the enormous climate impact these data centres are having. The new rules announced recently mean data centres will have to source 80% renewable energy within six years of coming on stream. But with the scale of growth expected in this sector, that remaining 20% will still drive a major increase in fossil fuel demand.
“We now have a situation where data centre electricity demand is soaking up almost all of the new renewable energy we are producing. What does this Government think the energy transition is for either helping households heat their homes with clean, affordable energy or facilitating ever-growing profits for global tech giants?
“The EPA report published yesterday showed clearly that Ireland is heading in the wrong direction. We could face up to €26 billion in climate fines because Fianna Fáil and Fine Gael refuse to confront the consequences of their policies.
“Government need to get real on the impacts their open-door data centre policies will have. We need to see meaningful controls on data centre expansion that limits their climate impact, prevents them from imposing additional costs on ordinary household billpayers and ensures that they’re contributing their fair share to our infrastructure and energy transition.”