KPMG Report Omits Rising Electricity Prices Despite Terms of Reference Suggestion

A Department of Enterprise report, produced by KPMG for over €100,000, omitted a section on potential electricity price increases due to rising data centre demand, despite the terms of reference explicitly suggesting its inclusion. The tender document, seen by The Journal, requested an assessment of «challenges and potential disadvantages» of further data centre development in Ireland beyond 2030, citing rising electricity prices as an example.

The final KPMG report, published in early June, instead stated that Ireland’s electricity grid «faces pressure from rising demand and grid constraints,» which will «limit the potential for new data centre connections» beyond 2030. It proposed aligning «data centre development, transmission upgrades and regional energy planning» but did not mention potential cost increases from these upgrades.

Sinn Féin MEP Lynn Boylan, who obtained the terms of reference via Freedom of Information, criticized the report for not addressing this «core question.» A study by Friends of the Earth and Beyond Fossil Fuels found Irish households paid an estimated €360 in additional electricity costs between 2015 and 2023 due to data centre demand, with potential further increases of €295 to €644 between 2025 and 2034.

The Department of Enterprise stated the report aimed to determine economic impacts and societal benefits, claiming its focus was consistent with its remit. While the KPMG report noted data centres could fund renewable projects, The Journal Investigates previously reported many new data centres use fossil fuels, particularly natural gas, due to grid connection challenges. New data centres must meet 80% of annual energy demand with additional renewable projects within six years of operation.