Irish Data Centers Linked to €360 Household Cost Increase, Tánaiste Defends Sector
A report by Friends of the Earth links Irish data centers to an estimated €360 in additional household electricity costs from 2015-2023, due to their high power consumption. Tánaiste Michael McGrath defended the sector, citing its €100 billion annual GVA and 875,000 jobs, while Aontú TD Paul Lawless called for regulation, highlighting data centers consumed 22% of Ireland's electricity in 2024.
A new report, «The Cost of Data Centres», by Friends of the Earth and Beyond Fossil Fuels, suggests Irish data centers contributed to an estimated €360 in additional electricity costs for the average household between 2015 and 2023. The report indicates that the rapid growth in data center power consumption increases wholesale electricity prices, exacerbated by the power system's reliance on gas and volatile fossil fuel pricing. Ireland has the highest share of data center power consumption in Europe.
Aontú TD Paul Lawless highlighted that data centers consumed 22% of Ireland's electricity in 2024, exceeding all urban households. He stated that a pensioner or family pays almost double per unit of electricity compared to a data center. Lawless cited the report, projecting data centers will add €1.4 billion to household electricity bills over the next few years, calling it a «hidden data center tax». He urged the Tánaiste to introduce legislation to regulate data center electricity pricing and implement a sustainable policy.
Tánaiste and Minister for Finance, Michael McGrath, cautioned against portraying data centers as «bogeymen». He emphasized their economic contribution, estimating that data center capacity in Ireland enables approximately €100 billion in annual gross value added (GVA), 875,000 jobs, and €14.6 billion in annual employment-related taxes. McGrath noted that hyperscale data centers are crucial for Ireland's global digital competitiveness and questioned what services would be cut if these tax benefits were lost.