Eoin Ó Broin (Dublin Mid West, Sinn Fein)
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182. To ask the Minister for Communications, Climate Action and Environment if he has engaged with stakeholders in relation to the situation whereby grid constraints from the excessive data centre demand are negatively impacting the connection of housing to the electricity network. [10348/25]

Darragh O'Brien (Dublin Fingal East, Fianna Fail)
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This Question was previously answered on the 24 February 2024 through Dáil Question number 61 and the position has not changed.

Issues regarding the development of the national electricity grid rest with EirGrid, as Transmission System Operator, and ESB Networks, as Distribution System Operator, who are independent of me as Minister in the exercise of their respective functions. Both entities are overseen by the independent regulator, the Commission for Regulation of Utilities (CRU).

Planning, building, safely operating and maintaining the electricity system are functions which are assigned to the respective Distribution and Transmission System Operators and for which they are accountable to the CRU. The CRU is accountable to a Committee of the Oireachtas and not the Minister. The CRU was assigned responsibility for the regulation of the Irish electricity sector following the enactment of the Electricity Regulation Act, 1999 and subsequent legislation.

Nonetheless, my Department is aware of the challenges around facilitating data centre connections in constrained regions which can lead to grid constraints on the local distribution network impacting other customers’ connections, including households and other commercial customers. In response to concerns around network constraints, particularly in the Dublin region, in November 2021 the CRU issued a Direction to System Operators, setting assessment criteria for new data centre connections aimed at protecting security of electricity supply and mitigating negative effects to the local electricity network in constrained areas.

More recently, the CRU have published a Large Energy Users Connection Policy Proposed Decision Paper on Tuesday February 18th, commencing a six-week consultation period. The proposed decision will apply to data centres only and will direct the System Operators to continue assessing connection applications considering local constraints for each application. During the consultation period, the Government will review the CRU’s proposed decision in detail and will engage with stakeholders to understand the potential implications.

We face the significant challenge of finding a balanced approach to facilitating additional demand for energy by data centres while also ensuring the competitiveness, sustainability and security of supply of our energy system, as well as delivering on priority policy objective such as housing. The CRU’s Connection Policy alone cannot solve this challenge.

That is why Government has included a commitment in the Programme for Government to address this challenge by scaling up investment in critical infrastructure and in our electricity grid which will be advantageous for customers and enhance the data centre footprint to support continued FDI investment. The continued development and planned enhancements to electricity grid infrastructure is key to facilitating the delivery of future demand growth.