Friends of the Earth Ireland calls on Government to rule out subsidies for the Data Centre Industry
Friends of the earth Ireland has called on the Government to rule out subsidies for the Data Centre Industry in Budget 2027.
This follows the release of new CSO figures that show Data Centres are responsible for consuming 23% of Ireland's electricity.
The environmental and social justice organisation warned that, despite rising household energy bills and Ireland continuing to miss its EU annual renewable energy targets, electricity demand from data centres continued to grow throughout 2025.
It said the Government must now explain how the funding mechanisms outlined in its Large Energy Users Connection Policy (LEAP) will protect households from additional costs and ensure renewable electricity is prioritised for homes, businesses and essential public services.
In particular, Friends of the Earth is calling on the Government to specifically rule out subsidies for the data centre industry in Budget 2027.
Friends of the Earth Ireland is calling for a temporary moratorium on new hyperscale data centres until the Government can demonstrate how further expansion can be accommodated without increasing household energy costs, undermining renewable energy targets or placing additional pressure on Ireland's electricity system.
Rosi Leonard, the Data Centre Campaign lead commented on the report.
“Despite data centres using nearly a quarter of electricity in the country, we are facing into an unprecedented era of hyperscale data centre build-out in Ireland.
“This is eroding public trust in the energy transition, especially in communities where hyperscale data centres are being planned.
“Research we commissioned this Spring shows that households already paid €715 million euro in extra bills due to data centres and the pressure they place on the grid.”
Rosi continued, “Government parties urgently need to show leadership and take stock of the evidence.
“We are seeing this leadership emerge in neighbouring countries like Scotland, where the Government party is reviewing a call from their members for a moratorium on hyperscale data centres due to the risks they pose in overwhelming renewables capacity there.
“But we are currently headed in the opposite direction, looking to increase data centre development through facilitating measures such as Private Wires legislation and the Large Energy Users policy.
“All of this is happening against a backdrop of worrying financial signals that the AI bubble is about to burst and a UN report pointing to Ireland as a cautionary tale.”
Friends of the Earth Ireland recently commissioned research showing that data centres have already added an estimated €715 million to household electricity bills by increasing pressure on Ireland's energy system.
Without action, that figure could rise to €1.6 billion over the next decade. Despite consuming 23% of Ireland's electricity, the sector directly employs just 3,300 people, less than 1% of the national workforce.
The organisation says any further incentives or preferential treatment for the industry, including those proposed under the LEAP policy, must be urgently justified and made fully transparent.
New CSO figures released today show electricity consumption by data centres increased by 10% between 2024 and 2025, while household electricity demand rose by just 2% and remained below previous levels.
Friends of the Earth says these figures expose a contradiction at the heart of Government energy policy. While Ministers argue that a new State-led gas reserve is needed for energy security, they continue to facilitate rapid growth in electricity demand from data centres.
The organisation argues that genuine energy security requires managing demand as well as increasing supply, rather than continuing to prioritise expansion of one of the country's most energy-intensive industries.