Data Centres

11. Deputy Brian Stanley asked the Minister for Climate, Energy and the Environment the impact of electricity demand for data centres on the public network; and the studies that have been carried out to determine the impact on the householder in terms of additional costs and so on. [65585/26]

My question relates to the impact of electricity demand from data centres on the public network. What studies have been carried out by the Department to determine the impact on householders and any additional costs to the public in general? It is not a case of arguing against all data centres. There will be data centres, but the proliferation of them in this country is high and they are having a significant impact on the grid and on costs.

I thank Deputy Stanley. Many Deputies have raised this matter today, understandably, and I have answered in detail. However, to answer the Deputy, for fear of repetition, data centres provide essential digital infrastructure for the economy and strengthen our position as a strategic knowledge-intensive location for the digital and tech sectors. As I mentioned earlier, just short of 190,000 people work in ICT, so it is significant. We are not a large, heavy industry country but I would contend ICT is that sector. The digital infrastructure is underpinned in many ways by data centres, which provide significant support to all areas of our economy. We brought forward the Large Energy User Action Plan, which I published in January 2026. It sets out the plan-led approach to enable Ireland to attract the next generation of investment in strategic energy-intensive sectors in the medium to long term. It will ensure future growth remains aligned with Ireland's green transition, energy affordability and security objectives, as well other strategic Government priorities such as the provision of housing, transport and water. The Government remains committed to investing in critical infrastructure to deliver electricity to a growing population and growing economy, with new housing and expanding businesses. Our grid investment programme provides an historic investment in Ireland's electricity grid infrastructure of up to €18.9 billion, with over 520 capital projects to be delivered over the next five years. They include 29 significant transmission infrastructure projects and 32 distribution substations. I meet every month with EirGrid and ESB Networks about their work programme to monitor that investment. In the Deputy's area of Laois, in July I was delighted to open the ESB Networks Bracklone 110kV substation, which was the first major substation to be delivered under this capital programme. It will have a massive positive impact on the area and on energy and electricity capacity-----

-----in Laois, and particularly Portlaoise.

Significant work is going on to upgrade the network and it is badly needed, but there is a cost to it. The Minister outlined the 190,000 jobs, but very few of them are in data centres. The point I am making is that almost a quarter of the available supply is being used by data centres and there are reports it could grow to more than one third and more. That puts huge pressure on the network. It puts a huge amount of pressure on EirGrid and ESB Networks to upgrade the grid and put significant investment into it. I am in favour of the investment in it because I welcome the opening of the substation in my area, where it is needed for the increased industry and jobs in the area and the increased population, not to mention the housing that is being built, but a recent study has shown data centres are putting an additional cost on householders. The data centres are getting cheaper electricity than Joe and Mary Public. That is the point. They are getting cheaper electricity while the public is paying for the upgrade. There is now an upgrade levy on everyone's bill. That is the key point the Minister needs to take home. We have a huge proliferation of them compared with other EU states and some American states are saying "No, not on our patch" to them now, but we are accepting everything. We need to have a more measured approach to this.

I fully understand why the Deputy is raising the issue and it is important we debate it, but not every application is accepted. I do not just accept every application for connection that comes in. Applications for connection agreements are made and they can be accepted or refused. We have set out how new applications have to be processed in a plan-led way. It is not just first come, first served or that people just apply for a data centre and get it. PR6, the grid investment programme, outlines what we need to do to get ahead of the energy demand projections and it is a big programme. In response to another Deputy's question earlier, I mentioned network charges, which are set by the Commission for Regulation of Utilities, CRU. I do not set them. I know the Deputy did not say I do. Regarding data centres, between 2020 and 2026, the network charges have increased by 175%. That is just to put the facts on the floor of the House. It has to be managed appropriately. I agree with the Deputy about that. That is what is being done and it is a big programme.

There are a number of issues. We are trying to construct 50,000 homes per year and there were reports again this week that the supply of housing is being hampered by the supply of water and electricity connections. There is clearly a pull factor and the Government has to take into consideration that there have to be jobs in other sectors and homes have to be built. There is pressure here every day with people talking about it. We are putting pressure on the Government about it. The Government is under pressure and is putting pressure on officials and local authorities to step up to the plate and drive on the programmes. We have to look at things in the round, but we have a habit in this country - and I do not want to give the House a history lesson going back to the crash and so on - of putting too many eggs in one basket. This is a high-profit industry. We are accepting the data centres. I agree that not all of them get planning permission, but the sheer number going in and the supply of water and electricity going into them could throw the economy off to one side and have a negative effect on other sectors. That is the key point.

I responded earlier about water usage. Uisce Éireann estimates that approximately 0.3% of water is used in data centres. They are its figures. I just wanted to put that on the record of the House again. However, I reiterate that it has to be managed and we are doing that. That is why Peter Burke and I brought forward the Large Energy User Action Plan. It sets out how, in a plan-led way, some of the conditions of future connection agreements for data centres are that there must be capacity and 80% of the energy must be brought forward through new renewable sources. We have not seen a large number of data centres being connected in recent years. It is not the case, as the Deputy acknowledged to be fair, that when applications are made, not even for planning but for a connection agreement, they are all granted. We have set down clearly what are now the criteria for getting a connection agreement and that is important. It is important that we manage current and projected demand well and appropriately.