OPINION: Data centres across the country could make electricity costs soar this winter

Data centres in Ireland are straining the electricity grid and could increase the price of electricity in Ireland, writes Tipperary Live. 

As we leave behind the summer and begin feeling the cold, electricity prices are on a lot of people’s minds heading into this winter of 2025.

There are 82 data centres currently operating in Ireland, there are 14 more under construction and 40 further data centres have received planning approval by local authorities.

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Data centres are an essential part of modern life, every time you use the internet you are using a server in a data centre. These data centres process and distribute data and with more and more services now online, the need for more centres has never been greater.

The reasons for a lot of data centres being in Ireland are due to a number of different factors. Ireland has a cool climate so the costs of cooling these centres is less than other warmer countries. Ireland also contains the European headquarters of some of the world’s tech giants like Google, Facebook and Microsoft. This is thanks to our low corporation tax rate.

Due to the increased demand in these data centres in Ireland and the current amount putting a strain on the system, the electricity grid may need upgrades, it was reported in August of this year. Those costs will spread across households' electricity bills, increasing them.

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It was reported in 2023 that data centres consumed a shocking 21% of Ireland’s metered electricity.

One way of lessening the cost of electricity is by investing in better interconnectors with neighbouring countries, like France and the UK. Energy will likely decrease in price then.

While more data centres seems essential for modern life, maybe the government needs to look at the consumption of energy they use up before more are built across the country.