Sinn Féin spokesperson on Environment, Climate and Energy, Pa Daly TD, has expressed alarm at the Commission for Regulation of Utilities’ (CRU) new draft guidelines for data centres.

He said that while data centres are crucial to modern digital life and the Irish economy, energy affordability and sustainability has to be front and centre.

Commenting on the new rules which were published today, Teachta Daly said:

“The CRU’s new draft rules for data centres give the green light for data centre expansion but fail to mandate for renewable energy solutions.

“This has the potential to have disastrous consequences not only for the public purse and the environment.

“Failing to meet our climate targets could cost the exchequer up to €8bn in fines.

“While data centres are an important facet of modern digital life, their energy demand has sky-rocketed over the last 10 years, placing extraordinary pressure on Ireland’s creaking electricity grid.

“It increased from 5% in 2015 to 21% in 2024 and it is predicted that their energy demand will reach 30% by 2032.

“While the CRU’s new rules mandate that any new development must generate or store as much electricity as they use, there is no requirement that this energy comes from renewable sources.

“This could see multiple new gas and oil power plants built to run their electricity-hungry operations, placing Ireland’s climate targets in jeopardy.

“As it stands, back-up and emergency generators attached to data centres already released the equivalent of running 33,750 cars per year over the last five years.

“This figure could grow exponentially if these new draft guidelines are approved.

“It has also been suggested that these guidelines introduce a new requirement for data centres to report their carbon emissions. However, this is already a requirement under Article 12 of the EU Energy Efficiency Directive. There is nothing new here.

“Additionally, it has been contended that the draft requirements could help local communities with their power needs by feeding excess electricity back to the grid.

“However, the grid is already highly constrained thanks to booming data centre demand.

“Adding more strain to an overloaded grid is not the answer.

“It seems it is one rule for them and another for the rest of us.

“Ordinary households are punished for their continued and often unavoidable reliance on fossil fuels through regressive carbon taxes meanwhile large corporations have now been reassured that the same rules won’t apply to them.

“No one is disputing the importance of data centres to the modern Irish economy.

“However, to be consistent with our climate obligations and furthermore to bring down energy prices, any data centre expansion should be based on renewable energy.

“Without these safeguards in place, government will prove yet again that they prioritise corporate interests over Ireland’s energy sustainability, security and affordability.”