Pa Daly (Kerry, Sinn Fein)
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138. To ask the Minister for Environment, Community and Local Government the measures he is taking to address the impact of data centres on energy bills; and if he will make a statement on the matter. [46022/25]

Pa Daly (Kerry, Sinn Fein)
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139. To ask the Minister for Environment, Community and Local Government the measures he is taking to address the warnings the Government received regarding the upward pressure data centre expansion is having on household energy bills (details supplied); and if he will make a statement on the matter. [46023/25]

Darragh O'Brien (Dublin Fingal East, Fianna Fail)
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I propose to take Questions Nos. 138 and 139 together.

The Programme for Government outlines the Government's policy position in relation energy policy, housing policy, FDI growth and the many other goals and objectives of the Government. It reflects the balance between the many opportunities and challenges facing the country and the actions that will be taken over the lifetime of the Government.

The core driver of higher energy bills for Irish households and businesses in recent years has been high wholesale energy prices. Ireland is a price taker on international energy markets and the rise in wholesale gas prices since the Russian invasion of Ukraine and the connection between gas and electricity prices has therefore had a serious impact on household energy costs. Responsibility for the regulation of the electricity and gas retail markets is assigned to the CRU. Prices are set by all suppliers as entirely commercial and operational matters by them.

Notwithstanding this, the Programme for Government acknowledges the increased energy cost pressures on households and businesses and is bringing forward a number of measures to help contain energy costs, including; under taxation and energy incentives, accelerating the roll out of more renewable energy infrastructure to support a highly renewable electricity system, establishing the National Energy Affordability Taskforce to identify, assess and implement measures that will enhance energy affordability for households and businesses; carrying out a review of the regulatory framework; and increasing Ireland’s overall energy supply and independence. It also recognises that increased and unprecedented investment and delivery in our grid and expanding our energy generation capacity is a priority which will be advantageous for all customers.

As stated in the July 2022 Government Statement on the Role of Data Centres in Ireland’s Enterprise Strategy, it is essential that the costs of new infrastructure are appropriately and fairly allocated. The CRU is responsible for ensuring appropriate levels of investment in our electricity and gas infrastructure, and for the subsequent proportionate allocation of costs for this investment, across all relevant customers. The CRU are also currently in the process of reviewing the extensive feedback received as part of their public consultation of their proposed connection policy for Large Energy Users (LEU’s) which considered the impact of future data centre connections on the capacity of our energy and grid infrastructure. Following the consultation period, the Government, as part of its own assessment of the proposed decision, is continuing to liaise with all relevant stakeholders. This review is ongoing, and a final decision is expected later this year.

Data centres are critical infrastructure for our modern economy, economic growth, the delivery of public services and provide the foundation for almost all online aspects of our lives. The Programme for Government commits to deliver a balanced approach to facilitating additional demand for energy by data centres while also ensuring the competitiveness of our energy system to enhance security and affordability for consumers and businesses.