Ciarán Ahern (Dublin South West, Labour)

I move:

That leave be granted to introduce a Bill entitled an Act to enable the Commission for the Regulation of Utilities to direct that offers for connection to the electricity transmission and distribution systems be made subject to terms and conditions requiring that specified measures be taken for the purpose of avoiding, preventing, reducing, offsetting or abating greenhouse gas emissions or otherwise in furtherance of the national climate objective; for that purpose to amend the Electricity Regulation Act 1999; and to provide for related matters.

This is a proud moment for me as the Electricity Regulation (Climate Action and Connection to Distribution and Transmission Systems) Bill 2025 – that is its Short Title - is my first Bill. As we are all aware, Ireland's electricity grid is under massive strain and one industry is overwhelmingly responsible, that is, data centres. Earlier this year, the CRU took an important step by proposing new rules for how large energy users, like data centres, can connect to our grid. It proposed that new centres must provide on-site or nearby generation or storage equal to the electricity they draw from the grid. In other words, if you take one MW, you must be able to produce one MW. While this is a welcome development, it is notable that the CRU did not specify the sources through which that electricity must be generated.

I will come back to that point, but to provide some context to this Bill, it is worth taking stock of where we are with data centres. In 2015, they accounted for 5% of our electricity demand. Today, that figure is above 20% and the CRU projects it will hit 30% by the early 2030s. Data centres will soon consume the equivalent energy of every household in the country, urban and rural combined. Our electricity grid is struggling to keep up. For that reason, the Government is now investing billions of euro in upgrading the grid, as well as in new sustainable power generation and additional gas-fired capacity. A confidential memo from the Secretary General of the Department of public expenditure last year put it plainly - soaring demand, largely attributable to data centres, was driving the need for new generation and grid reinforcement. Households are paying for the infrastructure that keeps data centres running.

The emissions story is equally troubling. Large data centres must hold greenhouse gas licenses and report emissions annually. A total of 24 licenses have been issued to date and it is estimated that data centre electricity use produced 1.53 million tonnes of carbon dioxide in 2023. These figures may be conservative.

They are also absorbing almost all of Ireland's new renewable electricity. Research by Professor Hannah Daly of UCC shows that as soon as new wind or solar comes online, data centre demand soaks it up, leaving little scope to decarbonise transport, heating or industry. We are currently miles off reaching our climate targets, and if this continues, Ireland could face penalties and costs of up to €26 billion. That, too, will fall to taxpayers. While the CRU's proposal for mandatory on-site generation is welcome, it contains one glaring omission. It does not specify where the electricity must come from. Under the current proposal, a data centre could comply by building new fossil fuel generators, locking in more carbon emissions at the very moment we need to be phasing out gas. The CRU says it cannot legally impose a renewable-only requirement. Under the Climate Action and Low Carbon Development Act 2015, public bodies must act insofar as practicable in line with the national climate objective, but the Act frames that objective in broad terms. The CRU is arguing that it does not give regulators the explicit authority to mandate specific emissions reductions or abatement measures, such as requiring data centres to use renewable generation. This is a serious legislative gap, one that could undermine our climate strategy.

My Bill seeks to address that gap. Its purpose is simple, namely, to give the CRU the clear legal authority that it says it currently lacks. The Bill would allow the regulator to require renewable on-site generation and impose specific emissions reduction or offsetting obligations on data centres and other large energy users. If enacted, the CRU would have the power to insist that data centres generate the electricity they need and that they do so through sustainable and renewable sources.

The Labour Party has long called for a moratorium on new data centre development, but we recognise that they are a fact of modern life. This Bill is an effort to be constructive in how they are developed in this country. We recognise Ireland's status as the Silicon Valley of Europe. Data centres support jobs, investment, huge tax receipts and a digital ecosystem that most of us rely on every day, whether we are doomscrolling late at night, or if, like me, you are watching Troy Parrott's 96th minute winner on repeat in slow motion with the Brazilian commentary. We cannot pretend that limitless unconditional data centre expansion is compatible with a functioning electricity system or a credible climate policy. Our climate objectives and the protection of households must be baked into every aspect of our industrial strategy. The Bill I am introducing provides the legal tools to do exactly that. Data centres can play a role in Ireland's future, but not at the expense of our climate, our energy security or our people. I look forward to the Bill being taken at Second Stage and to having engagement on it with the Minister and other Members. I appeal to all Members of the House to support the Bill.

See this speech in context