Alan Dillon (Mayo, Fine Gael)

The programme for Government sets out a clear policy direction that balances energy, housing, climate and economic development. It recognises that increased and unprecedented investment in our electricity grid and generation capacity is essential to meet future demand, not just for data centres but for housing, electric vehicles, heat pumps and a growing population. The electricity and gas retail market in Ireland operates under a European regulatory regime. Prices are set by suppliers as entirely commercial and operational matters. However, the CRU has statutory responsibility for consumer protection. It is currently reviewing investment proposals under price review 6, PR6. Under PR6, the CRU has proposed a record €18 billion investment in the grid between 2026 and 2030, with €14.1 billion guaranteed. The Government is underpinning this with €3.5 billion in equity support for EirGrid and ESB Networks. This represents a step change in infrastructure delivery, ensuring our grid can support both economic growth and housing delivery.

While already contracted data centres will be accommodated in the near term, the Government has committed to developing a plan-led approach for future large energy users. This will align with our decarbonisation objectives, supporting Ireland’s knowledge-led economy and providing certainty for the sector.

Let me be clear, data centres are a core enabler of our technology-rich innovation economy. Ireland has successfully attracted global leaders in this space. This must be balanced with the needs of communities, housing developments and energy affordability. That is why system operators assess future demands, including housing targets, population growth and climate goals, and the Government is scaling up investment in critical infrastructure to ensure that all customers benefit and that Ireland’s energy system remains secure, affordable and fit for purpose.

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