Press release

Irish energy regulator sued over latest data centre decision amidst climate and energy concerns 

27 April 2026 

Environmental lawyers have today presented a case to the High Court against the Irish energy regulator for its recent decision on grid connection requirements for data centres, amidst an unprecedented boom in demand for artificial intelligence infrastructure in the country and abroad.  

The case - taken by Friends of the Irish Environment, Friends of the Earth Ireland and ClientEarth - argues that the Commission for the Regulation of Utilities (CRU) fails to comply with obligations under Irish and European law in its latest rules for connecting large energy users to the grid and would lock Ireland into high-emitting, expensive fossil gas for years to come. [1]  

Following a multi-year moratorium on connecting new data centres to the electricity grid around Dublin, the Irish regulator published its Large Energy Users Connection Policy in December 2025 to provide guidance on how the infrastructure could connect to the national grid. [2]  

The decision said data centres would be allowed to run on fossil fuels for the next six years, after which they would then be required to run on an energy supply that is at least 80 percent renewable.  

However, that 80 percent figure does not factor in the entire electricity consumption of data centres as it excludes back-up generation – a high-intensity process that often runs on fossil gas.  

Therefore, lawyers argue the combined elements of this decision are likely to lock Ireland into decades of increased greenhouse gas emissions despite its legal obligations to reduce them, and risks exposing Ireland to further dependence on imported fossil fuels and the price volatility that follows as a consequence. [3]  

Friends of the Irish Environment Director Tony Lowes said:  

“This latest CRU decision is set to be the guiding star in a myriad constellation of data centres in Ireland – which is exactly why we’re challenging it in court today.  

“If it goes ahead as is, this policy wouldn’t just open the door to immense energy demand – it would swing it right off its hinges and lock Ireland into decades of greenhouse gas emissions at the very moment we need to reduce them.  

“This isn’t just a question of policy – it’s a matter of law that we intend to see all the way through to a judgment.”  

Friends of the Earth Ireland CEO Deirdre Duffy said:  

“Ireland’s energy policy is going in the wrong direction and this case is seeking to press pause on that. Instead of cutting fossil fuels, which are driving the climate change Irish people are experiencing with floods and storms, we’re locking in more gas just to keep up with soaring demand from data centres.  

This has real consequences for Irish people. It drives up energy bills for households and small businesses while clean energy is diverted away from people who need it most.  

We should be using renewables to lower energy costs and slash emissions, especially in the current geopolitical context, not feed an ever-growing demand from one industry. 

If we do not change course, this approach means higher bills, more reliance on gas in Ireland and our climate targets slipping out of reach.” 

ClientEarth lead lawyer Natascha Hospedales said:  

“Data centres already consume over a fifth of Ireland’s electricity, and that share is rising fast. If their growth is underpinned by fossil fuels, it risks locking in higher emissions and prolonging Ireland’s dependence on gas – which is extremely vulnerable to price spikes that have put Irish and European households under immense financial pressure in recent months.  

“Both Ireland and countries across Europe are grappling with the energy demands of rapidly expanding data centres in the global race to scale AI. That’s exactly why regulators like the CRU must ensure their approach to the infrastructure boom is responsible and aligns with legally binding climate commitments.” 

As of 2025, Ireland is home to approximately 90 data centres with dozens more in the planning pipeline – and the build out is projected to have a massive impact on Ireland’s electricity use.  

Data centres are already using over 20 percent of Ireland’s electricity – more than the combined usage of all urban homes in the country. That figure is predicted to climb up to a third of the country’s electricity by the end of the decade. [4]  

ENDS  

Notes to editors:

[1] In the case, Friends of the Irish Environment, Friends of the Earth Ireland and ClientEarth have argued the CRU is failing to comply with:  

  • Climate Action and Law Carbon Development Act 2015, as amended 

  • The EU’s Energy Efficiency Directive 

  • The EU’s Strategic Environmental Assessment Directive 

  • The Espoo Convention 

  • The Kiev Protocol to the Espoo Convention 

  • The Aarhus Convention 

[2] The CRU full decision on large energy users connection policy is available here.     

[3] More information on the energy usage of data centres is available here.  

[4] More information on the number of data centres in Ireland can be found in a June 2025 Journal Investigates piece and further detail on data centres’ electricity use in Ireland can be found in this Friends of the Earth resource on data centres. 

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