Irish households could face paying up to €644 extra on electricity bills over the next decade due to the continued expansion of data centres, according to a new report published by environmental groups Friends of the Earth Ireland and Beyond Fossil Fuels.
The study claims households already absorbed an estimated €715 million in additional electricity costs between 2015 and 2023 as growing data-centre energy demand placed increasing pressure on Ireland’s power system.
Researchers estimate the average household paid an extra €360 over that period due to rising wholesale electricity prices linked to the rapid growth of the sector.
Data centres accounted for 22 per cent of Ireland’s electricity usage in 2024, according to Central Statistics Office figures, compared with just 5 per cent in 2015. Their energy consumption now exceeds that of all urban households combined.
The report warns that, under current Government policy, electricity demand from data centres is expected to continue rising sharply throughout the coming decades.
“New data centres will continue to come online in Ireland throughout the 2020s and 2030s under current policy arrangements, in a world beset by extreme energy market volatility, and a lagging transition to a sustainable, decarbonised economy,” the report stated.
Authored by ecological economist Dr Seán Fearon of the Autonomous University of Barcelona, the study argues that the “high, growing and inflexible” electricity demand of data centres increases the number of hours in which gas determines electricity prices on the Irish grid.
“Our modelling shows that the high, growing and inflexible nature of data centres’ electricity demand increases the number of hours in which gas sets the price in the Irish power system, driving up electricity costs,” Dr Fearon said.
He added that Ireland’s reliance on gas leaves consumers vulnerable during periods of international energy instability.
“Historical evidence suggests this effect becomes even more pronounced during energy shocks, with the combination of high data-centre demand and gas dependency significantly amplifying price spikes,” he said.
The report estimates households could pay a further cumulative €295 to €644 in additional electricity costs between 2025 and 2034 if data-centre growth continues at projected levels. Nationally, this could amount to between €633 million and €1.43 billion in added costs.
Friends of the Earth Ireland described the findings as evidence of what it called a hidden financial burden on consumers.
“Irish households have effectively been paying a hidden data-centre tax on their electricity bills,” said Rosi Leonard, the organisation’s data-centre campaign lead.
She called on the Government to halt approvals for new data centres and impose stricter limits on the expansion of existing facilities.
Industry representatives rejected the findings, insisting households are not subsidising the sector.
Maurice Mortell, chair of Digital Infrastructure Ireland, said the report ignored how large energy users purchase electricity and accused campaign groups of attempting to divide public opinion.
“Data centres are a vital ingredient in the foreign direct investment ecosystem here and are also vital for public bodies and domestic companies,” he said.
According to Digital Infrastructure Ireland, data-centre investors have contributed approximately €18 billion to the Irish economy.
