Labour climate spokesperson and TD Ciarán Ahern has said that households are the ones paying the bill for a new wave of data centres across Ireland.
On Tuesday, Cabinet signed off on a new plan to facilitate the construction of more data centres across the country, which Ahern claimed will result in higher electricity prices for consumers and cause Ireland to miss legally binding climate targets.
The Dublin South-West TD said, “Ireland’s grid is being stretched to breaking point and one industry is overwhelmingly responsible.”
He noted that in 2015, data centres accounted for just 5% of national electricity demand; today that figure is above 20%, and regulators project it will hit 30% in the next decade.
He criticised the government for signing off on the expansion of data centres, saying “families and small businesses expect a reliable electricity system, affordable bills and a Government that protects them from reckless decisions that load costs onto their shoulders.”
Instead, they are being asked to subsidise an industry whose electricity demand is growing at a staggering pace,” he said.
“At the same time, we are failing to focus on what should be the priority, decarbonising the energy we already use. Every new data centre approved without conditions soaks up scarce renewable capacity that should be driving down emissions across homes, transport and existing industry. We cannot build a clean energy system if all new renewable generation is immediately swallowed by new demand, while households and communities see no benefit.
The Labour climate spokesperson said “Labour has been clear and consistent. We have long called for a moratorium on new data centres until we can be certain they will not overwhelm the grid, inflate household bills or undermine our climate targets.”
“We recognise the role of the tech sector in Ireland. Data centres support jobs, tax revenue and services many people rely on every day. This is not about shutting down technology or turning our backs on investment. The question is whether we manage growth responsibly, sustainably and in the interests of the public as a whole.
“Labour’s Electricity Regulation Bill 2025 would give 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 would ensure that data centres contribute clean, additional power rather than crowding out the renewable energy needed to decarbonise the rest of the economy.
“We cannot pretend that limitless expansion is compatible with a functioning electricity system or credible climate action. Our climate objectives cannot sit on a shelf while one sector expands without constraint and consumes the clean energy Ireland urgently needs elsewhere.
“Before Cabinet signs off on any plan to build more data centres, the Government must pass Labour’s Bill to climate proof them. This is about protecting households, meeting climate targets and acting in the public interest. The government must act now,” he said.