Written answer
Data Centres
29. Deputy Brian Stanley asked the Minister for Climate, Energy and the Environment if his Department has carried out a detailed assessment of the potential extra demand of electricity required by data centres over the next decade; the additional percentage cost this could put on household bills; and if he will make a statement on the matter. [44126/26]
Comment on this
33. Deputy Brian Stanley asked the Minister for Climate, Energy and the Environment if his Department has carried out an impact study on the effects of the large energy demand of data centres; the way this may be increasing costs to households; the findings of same; and if he will make a statement on the matter. [44125/26]
Comment on this
I propose to take Questions Nos. 29 and 33 together.
As the transmission system operator for Ireland, EirGrid is responsible for the operation and planning of the electricity transmission system. To achieve this, EirGrid balance supply and demand continually while also planning for Ireland’s long-term electricity needs.
EirGrid’s All-Island Resource Adequacy Assessment looks at the balance between electricity demand and supply in Ireland for the next 10 years, which includes a ten-year demand forecast. In EirGrid’s most recent published assessment, the All-Island Resource Adequacy Assessment 2026-2035, it is noted that by 2035, 35% of all electricity demand is expected to come from data centres and new technology loads.
While Ireland has attracted some of the best data centre and tech companies in the world, the Government continues to work with the sector towards a secure and decarbonised energy future. Government acknowledges the need to balance the opportunities and challenges being faced.
Data centres are central to Ireland’s economic and digital future as they are a key part of our value proposition for foreign direct investment and the associated employment. However, when considering the impact of data centres, we must also weigh wider economic benefits — tax revenues, employment, broader digital infrastructure value and significant support and linkages provided to other high value sectors of the economy.
The Large Energy-User Action Plan (LEAP), published in January 2026 sets out the Government’s approach to planning for sustainable new energy intensive industrial developments. It prepares for a plan-led approach to the location of very large energy user (LEU) sectors, especially in the period beyond 2030, including through identifying green energy park locations.
Under LEAP, my Department, in collaboration with the System Operators and Department of Enterprise, Tourism and Employment (DETE) will model and consider a range of plan-led LEU development scenarios and locations. The modelling work will provide Government with insights for consideration on the impact of future LEU demand on the energy system with regard to infrastructure requirements, infrastructure cost, and sustainability objectives. The outcomes will be used to inform policy choices going forward, to support a more integrated approach to a plan-led energy system agreed across System Operators, the regulator and Government.
The Commission for Regulation of Utilities (CRU) is responsible for electricity connection policy and the economic regulation of the electricity system operators ESB Networks and EirGrid. Electricity Network Tariffs are set every year by the CRU to recover the costs of developing, operating, and maintaining the electricity grid. CRU are progressing a multi-annual Electricity Network Tariff Review project to reform how network charges are levied to ensure costs are fairly distributed across different customers. Additionally, Government has established the National Energy Affordability Taskforce which is preparing an Energy Affordability Action Plan to identify, assess and implement measures that will enhance energy affordability for households and businesses.