Rising data centre demand offsetting green power gains, watchdog warns

Claudia Savage, Press Association

Rising electricity demand from data centres is “offsetting gains in renewable generation”, a climate watchdog has warned.

The annual review from the Climate Change Advisory Council said limited additional capacity from renewable energy leaves Ireland “unnecessarily dependent on imported fossil fuels and exposed to global energy shocks”.

The review outlines that emissions in the electricity sector fell by around 8 per cent in 2025 compared with 2024.

Targets were missed for the share of electricity demand met by renewable sources, with rising data centre demand eroding improvements in renewable generation.

The review says Ireland’s electricity demand rose by 2.6 per cent in 2025, outpacing the annual European increase of 1 per cent, and is now 30.2 per cent higher than in 2015.

That growth is almost entirely driven by data centre expansion in Ireland, with data centres experiencing an average year-on-year growth rate of 23 per cent since 2015, while all other Irish customer demand has increased by 0.5 per cent per annum on average during the same period.

This means that, using the latest Central Statistics Office (CSO) data, consumption directly from data centres has risen by 463 per cent since records began in 2015 and by 220 per cent since 2018.

The review says: “As new renewable deployment has ultimately been matched or exceeded by increasing data centre demand, recent reductions in electricity sector emissions are largely driven by a substantial increase in net electricity imports and the reduction in coal-fired power generation.”

Alex White, chairman of the Climate Change Advisory Council, said renewable energy “helps to reduce wholesale electricity prices” but Irish homes “will not feel the full benefit unless we build the grid, storage and capacity needed to use that power”.

“Every year of delay leaves Ireland more exposed to imported fossil fuels, volatile global markets and avoidable costs,” he said.

“Storm Éowyn showed how vulnerable our electricity system, essential services and communities remain to extreme weather.

“Electricity resilience must be central to national climate adaptation planning, with clear responsibility, investment and delivery.

“The Government has set the right ambition to end Ireland’s reliance on fossil fuels. The test now is delivery.

“Critical grid projects must be prioritised, renewable planning must be accelerated, and the benefits of clean electricity must reach Irish households and business to ensure energy security and affordability for all.”

The body is calling for urgent action to accelerate renewable electricity delivery, particularly onshore wind and solar.

It says the Critical Infrastructure Bill must designate electricity grid reinforcement projects for prioritised delivery and must not remove the climate obligations that apply to all public bodies under Irish law.