Data centres snap up new renewable energy capacity

Data centres are consuming a growing share of Ireland’s electricity supply and absorbing much of the country’s new renewable energy capacity, according to the Climate Change Advisory Council (CCAC).

The council’s Annual Review 2026 found that electricity demand from data centres has increased from 5% of total national demand in 2015 to more than 20% in 2025, offsetting gains made through renewable electricity generation.

The report warned that Ireland is falling well behind on renewable electricity targets, with just 0.8GW of new wind and solar capacity added last year, less than half of the approximately 2GW required annually to meet the Government’s 2030 Climate Action Plan targets.

At the same time, around 10% of available renewable electricity generated in 2025 could not be used because of grid constraints and curtailment issues, the highest level recorded since records began in 2016.

Emissions

While electricity emissions fell by an estimated 8.9% in 2025 following the closure of coal-fired generation and increased electricity imports, the council said Ireland remains heavily reliant on imported fossil fuels and vulnerable to international energy price shocks.

Net electricity imports accounted for 17.3% of Ireland’s electricity supply last year.

The report said ongoing delays in grid reinforcement and renewable energy delivery are leaving Ireland exposed to volatile global energy markets, including disruption linked to conflict in the Middle East.

Prices

The council also highlighted the impact of high electricity prices on households, stating that Ireland now has the highest household electricity prices in the European Union, with 319,000 households in arrears on electricity bills.

According to the report, wholesale electricity prices in March 2026 averaged €94/MWh on days with high wind generation, but rose to €179/MWh when the system relied more heavily on imported fossil fuels.

The CCAC called for the Government to prioritise critical grid projects through the proposed Critical Infrastructure Bill and ensure county-level renewable energy plans are adopted by the end of 2026.