Government policy allows data centres hijacking the energy system to block houses – Lynn Boylan MEP

Sinn Féin MEP Lynn Boylan has said that a Commission for Regulation of Utilities (CRU) report has exposed a scandal: while the government continues to fail in tackling the housing crisis, vital electricity capacity meant for new homes is being seized by data centres. 

She added that ordinary people are being forced to pay the price not only through blocked housing projects but also rising energy bills. 

Boylan said: 

“The CRU’s report reveals a scandal hiding in plain sight: data centres are making the housing crisis worse. 

“ESB Networks Substations like Castlebaggot in West Dublin were intended to support new homes being built, but have instead been almost entirely handed over to data centres. 

“Massive grid upgrades, built to enable construction of new homes, clean transport, and sustainable communities, are being hijacked by data centres under a “first come, first served” system that ignores the public good. 

“While one minister fails to build enough homes, another minister is allowing data centres to gorge themselves on our energy system, preventing more homes from being built. 

“Adding insult to injury, Castlebaggot and substations like it are paid for by all of us through higher network charges on our electricity bills. This year, bills went up by €101 to pay for grid upgrades.

“That means data centres are not only worsening the housing crisis but they’re also worsening the cost of energy crisis. 

“We want fewer children in emergency accommodation, not more data centres but the government doesn’t seem to have gotten the message. It’s time to call a halt on this madness. We need a moratorium on data centres now.”

• See page 42 of CRU report here: https://www.cru.ie/about-us/news/new-electricity connection-policy-for-data-centre/ 
• CRU announced in August 2024 that bills were going up by €101 per annum to pay for network upgrades: https://www.cru.ie/publications/28251/
• This was in addition to a €38.76 annual bill increases from the PSO levy: https://www.cru.ie/publications/28203/
• Lynn Boylan MEP previously highlighted how these increases devoured the government’s energy credit. https://vote.sinnfein.ie/budget-day energy-credit-devoured-by-data-centres-lynn-boylan-mep/

Relevant Quote from CRU report:

“In the development of this proposed decision paper, ESB Networks has highlighted risks that, in the absence of an adequate policy response, the potential level of data centre demand could significantly impact its ability to accommodate demand connections required to support Government policy targets such as 550,000 new homes by 2040 (Project Ireland 2040 – National Planning Framework, 2018 34)), 680,000 heat pumps and 945,000 EVs by 2030, major electrified rail projects explicitly identified in the National Development Plan 35 (e.g. DART+, Metrolink etc) and other social infrastructure. For example, in West Dublin the new Castlebaggot 220 kV Station was initially designed to support housing growth, relieve pressure from the Inchicore Bulk Supply Point and support industrial growth in Grange castle Business Park as well as future demand needs of the entire West Dublin/Kildare region. 

However, due to the first come first served connection approach this new capacity at Castlebaggot was almost entirely used by data centres applications, leaving limited capability to support other demand needs in the area. This raises a question as to the allocation of capacity at substations and the timing of demand applications. For instance, where network infrastructure upgrades have been identified to deliver future needs at a specific location, should this capacity be reserved to ensure the successful delivery of national priorities, such as housing, infrastructure and enterprise, in a balanced manner. The CRU is of the view that it does not have sufficient statutory powers to prioritise certain government policy objectives over others under current legislation. The Netherlands Authority for Consumers and Markets (ACM) has recently developed and implemented a prioritisation framework36 for the distribution of capacity on the electricity grid, which was facilitated by the introduction of national legislation37. Parties that contribute to identified social goals can thus be given priority for a connection to the electricity grid.”