Households Subsidising Data Centre Expansion is Wrong - O’Gorman
A Friends of the Earth report has shown the average Irish household may have paid an estimated €360 in additional electricity costs between 2015-2023 due to data centre expansion
Green Party Leader Roderic O’Gorman has called for the Government to reinstate a moratorium on data centres being built in the State, following the publication of a report by Friends of the Earth which details that Irish households have faced over €715 million in higher electricity costs to effectively subsidise data centre expansion.
A moratorium on date centre expansion had been enacted by the Green Party during the 2020-2024 Government, given their prolific growth and growing environmental impact. Data centres now consume more than 20% of Ireland’s electricity, with their demand increasing fourfold since 2015.
The report found that due to enormous demand from data centres, the Irish electricity market often exceeds the availability of lower-cost renewables. Cost is then set by the price of gas, leading to bill increases for households, with the average Irish household potentially having paid €360 in additional electricity costs between 2015-2023.The report also detailed that in the case of another energy price shock, Irish households may face additional costs amounting to €1.6 billion if data centres are allowed to continue expanding.
Commenting on this, O’Gorman said that “Government climate commitments amount to little more than greenwashing when they allow data centres to crumble any advances toward sustainability made by the investment of the State, as well as the public, in renewable energy.”
O’Gorman expressed concern that over-exploitation of the energy grid by data centres may lead to “new houses not being able to connect to the grid, the electrification of essential public transport projects being put at risk, and further hikes in household bills. ”
O’Gorman concluded by stating “I want a clear answer from the Government as to what benefit these centres bring to our nation. Supposed job benefits are clearly non-existent. According to the IDA, less than 1% of the workforce are working in these centres. Here in Dublin, 50% of our electricity is being drained by these centres, many of which are in or bordering my own constituency of Dublin West. These centres are a drain on our country in so many ways - the Government cannot continue to allow their unchecked expansion in order to appease multinationals.