No decision yet on gas proposals for data centres

Ireland’s energy regulator has not yet decided whether data centres should receive discounted gas tariffs in exchange for accepting possible supply disruptions during periods of high demand.

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Gas Networks Ireland has statutory obligations under the Gas Act 1976 to provide third-party access to the gas network and cannot simply refuse eligible industrial customer connection applications on the basis of potential future capacity constraints.

The Commission for Regulation of Utilities has proposed interruptible gas contracts for large energy users. Under the plan, data centres would pay lower network tariffs, but their gas supply could be reduced or cut when the system comes under pressure, including during very cold weather. The regulator said it is still considering stakeholder feedback.

The CRU said Gas Networks Ireland has legal obligations under the Gas Act 1976 to provide third-party access to the gas network. It cannot refuse eligible industrial connection applications solely because of possible future capacity constraints. The proposed arrangements, the regulator said, would provide safeguards for the security and resilience of the gas system while complying with the existing law.

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The purpose of the CRU's proposal is therefore to introduce appropriate safeguards through interruptible connection arrangements that protect the security and resilience of the gas system while ensuring compliance with the existing legislative framework.

The proposal has drawn sharp criticism from opposition politicians. Sinn Féin MEP Lynn Boylan called it reckless, pointing to the 27% of gas-connected households that are in arrears. Social Democrats TD Jennifer Whitmore said unrestrained data centre growth was putting Ireland’s energy security in serious jeopardy. She said the CRU had indicated that 17 planned new data centres would require as much gas as six large gas-fired power stations or 2.6 million homes.

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Given that 27% of households connected to the gas grid are in arrears, it's another insult to people for the data centres that are part of driving up the cost of energy, are being offered discounts, while households have been left in the cold by the Government.

Labour climate spokesperson Ciarán Ahern renewed calls for a moratorium on further data centre expansion. He said people struggling with energy bills would question why data centres could receive discounts while ordinary customers continued to pay high prices.

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The CRU has outlined that just 17 planned new data centres will have the same gas demand as six large gas-fired electricity generators or 2.6 million homes.