Insight · bills

Do data centres push up household bills? What the evidence says

Probably yes, mainly through wholesale prices, but by an uncertain amount. Rerunning the Friends of the Earth model on independent data gives about €293 per household for 2021–23 (the study: €263) and €112–128 a year now, an upper-end estimate. The PSO levy split costs households a few euro a year; network charges cut both ways (CRU, checked Oct 2026).

By StackPath · published 3 October 2026 · updated 10 October 2026 · how we know · corrections

Three ways data centres could reach a household bill

Data centres used 7.7 TWh in 2025, 23.2% of metered electricity (CSO). They could affect what households pay in three ways that can be checked with public data, and some that cannot:

  • Wholesale prices. Extra demand means dearer plant is needed more often.
  • The PSO levy, which funds renewable support and is shared out by a formula.
  • Network charges, which pay for the grid and are split between customer groups by the CRU.
  • Not testable: who pays for grid reinforcement that data centres triggered, capacity payments and constraint costs.
Figure 1

Where Ireland's electricity growth went

Since 2015, metered electricity use grew by 8,388 GWh, and data centres account for 77% of that growth.

Metered electricity: data centres and everyone elseAll metered electricity rose from 24,599 GWh in 2015 to 32,987 GWh in 2025. Data centres added 6,422 GWh and everyone else 1,966 GWh, so data centres account for 77% of the growth.010,00020,00030,000GWH A YEAR2015: data centres 1,240 GWh (5%), everyone else 23,359 GWh20152016: data centres 1,483 GWh (5.8%), everyone else 23,872 GWh20162017: data centres 1,762 GWh (6.8%), everyone else 23,964 GWh20172018: data centres 2,183 GWh (8.2%), everyone else 24,547 GWh20182019: data centres 2,489 GWh (9.4%), everyone else 24,015 GWh20192020: data centres 3,031 GWh (11.2%), everyone else 24,025 GWh20202021: data centres 4,013 GWh (14.1%), everyone else 24,493 GWh20212022: data centres 5,274 GWh (17.7%), everyone else 24,551 GWh20222023: data centres 6,339 GWh (20.7%), everyone else 24,242 GWh20232024: data centres 6,974 GWh (21.9%), everyone else 24,930 GWh20242025: data centres 7,662 GWh (23.2%), everyone else 25,325 GWh2025Everyone else+1,966 GWhsince 2015Data centres+6,422 GWhsince 2015
Metered electricity: data centres and everyone elseAll metered electricity rose from 24,599 GWh in 2015 to 32,987 GWh in 2025. Data centres added 6,422 GWh and everyone else 1,966 GWh, so data centres account for 77% of the growth.010k20k30kGWH A YEAR2015: data centres 1,240 GWh (5%), everyone else 23,359 GWh'152016: data centres 1,483 GWh (5.8%), everyone else 23,872 GWh2017: data centres 1,762 GWh (6.8%), everyone else 23,964 GWh'172018: data centres 2,183 GWh (8.2%), everyone else 24,547 GWh2019: data centres 2,489 GWh (9.4%), everyone else 24,015 GWh'192020: data centres 3,031 GWh (11.2%), everyone else 24,025 GWh2021: data centres 4,013 GWh (14.1%), everyone else 24,493 GWh'212022: data centres 5,274 GWh (17.7%), everyone else 24,551 GWh2023: data centres 6,339 GWh (20.7%), everyone else 24,242 GWh'232024: data centres 6,974 GWh (21.9%), everyone else 24,930 GWh2025: data centres 7,662 GWh (23.2%), everyone else 25,325 GWh'25Data centres +6,422Others +1,966 GWh

Each bar is all electricity measured by meters in Ireland in one year: red is data centres, grey is homes, businesses and industry combined. Data centres went from 1,240 GWh (5%) in 2015 to 7,662 GWh (23.2%) in 2025, while everyone else added 1,966 GWh. The share of growth is our arithmetic on the CSO series. The SEAI, measuring all electricity demand rather than metered use, puts data centres at 88.2% of demand growth from 2015 to 2024.

Sources: CSO, Data Centres Metered Electricity Consumption (MEC02), 7 Jul 2026 · SEAI, Energy in Ireland 2025, Dec 2025

Wholesale prices: the €360 estimate, rerun

The May 2026 study for Friends of the Earth Ireland, by Seán Fearon, estimated that data centres added about €360 to the average household's electricity costs over 2015–2023, €263 of it in 2021–23. Its method asks how much the price rises with "residual demand" (demand minus wind) and attributes the data-centre share of that demand.

We reran the same method on independent data (Ember hourly prices and EirGrid demand and wind for 2021–23; SEMOpx and EirGrid for the last year). It gives:

€293
Per household, 2021–23 (study: €263)
StackPath rerun, estimate
€112–128
Per household per year, Oct 2025–Sep 2026
StackPath rerun, estimate
81%
Half-hours where gas most likely set the price
SEMOpx, estimate

So the number reproduces in size. It is, though, a short-run model: it holds imports, the plant fleet and bidding fixed and treats the whole link between demand and price as caused by load. That makes it an upper-end estimate of the wholesale effect, not a measured bill impact. The study itself hedges its result ("appears to be"), and the method leaves out channels that could add to the cost, such as capacity payments and constraint costs. Suppliers also hedge, so wholesale changes reach bills late and only in part. The study's projections for 2025–2034 depend on demand and fuel scenarios and cannot be tested.

Figure 2

How the wholesale price is set, and what a flat load would pay

The last, dearest unit needed sets the price each half-hour. A data centre draws the same power all day, so at spot prices it would pay the plain time average, €136.9/MWh over the last year; wind earned 14.7% less, €116.7.

How the wholesale price is set, and the average Irish price by hour of dayLeft: a schematic merit order, cheapest capacity first; the demand line crosses the stack at the last unit needed, which sets the price. Right: average Irish day-ahead price by hour (UTC), lowest €112.4 at 3:00, highest €183.1 at 18:00. A flat load would pay €136.9/MWh at spot, the national load profile €138.7, and wind earns €116.7.1 · How the price is setILLUSTRATIVE, NOT TO SCALE€/MWh →capacity offered, cheapest first →Wind, solarImportsGas CCGTPeakersPeakers: older gas and oil plant.Imports clear when Britain is cheaper.demand, windy nightdemand, still eveningThe dearest unit needed in each half-hour sets theprice everyone is paid. Gas made 40.2% of Irishelectricity demand in 2025, so it is often thatunit.2 · The real Irish day, last 12 monthsAVERAGE DAY-AHEAD PRICE BY HOUR (UTC), €/MWh05010015000:00 UTC · €117.8/MWh average01:00 UTC · €117.1/MWh average02:00 UTC · €114.3/MWh average03:00 UTC · €112.4/MWh average04:00 UTC · €114.2/MWh average05:00 UTC · €124.5/MWh average06:00 UTC · €144.5/MWh average07:00 UTC · €155.7/MWh average08:00 UTC · €151.0/MWh average09:00 UTC · €138.3/MWh average10:00 UTC · €126.4/MWh average11:00 UTC · €119.5/MWh average12:00 UTC · €115.7/MWh average13:00 UTC · €114.0/MWh average14:00 UTC · €117.1/MWh average15:00 UTC · €131.9/MWh average16:00 UTC · €158.7/MWh average17:00 UTC · €180.4/MWh average18:00 UTC · €183.1/MWh average19:00 UTC · €176.2/MWh average20:00 UTC · €165.3/MWh average21:00 UTC · €149.4/MWh average22:00 UTC · €133.6/MWh average23:00 UTC · €124.3/MWh average0006121823€183Flat 24/7 load, spot €136.9National load profile €138.7Wind earns €116.7
How the wholesale price is set, and the average Irish price by hour of dayLeft: a schematic merit order, cheapest capacity first; the demand line crosses the stack at the last unit needed, which sets the price. Right: average Irish day-ahead price by hour (UTC), lowest €112.4 at 3:00, highest €183.1 at 18:00. A flat load would pay €136.9/MWh at spot, the national load profile €138.7, and wind earns €116.7.1 · How the price is setILLUSTRATIVE, NOT TO SCALE€/MWh →capacity offered, cheapest first →Wind, solarImportsGas CCGTPeakersPeakers: older gas and oil plant.Imports clear when Britain is cheaper.demand, windy nightdemand, still eveningThe dearest unit needed in each half-hour sets the priceeveryone is paid. Gas made 40.2% of Irish electricitydemand in 2025, so it is often that unit.2 · The real Irish day, last 12 monthsAVERAGE DAY-AHEAD PRICE BY HOUR (UTC), €/MWh05010015000:00 UTC · €117.8/MWh average01:00 UTC · €117.1/MWh average02:00 UTC · €114.3/MWh average03:00 UTC · €112.4/MWh average04:00 UTC · €114.2/MWh average05:00 UTC · €124.5/MWh average06:00 UTC · €144.5/MWh average07:00 UTC · €155.7/MWh average08:00 UTC · €151.0/MWh average09:00 UTC · €138.3/MWh average10:00 UTC · €126.4/MWh average11:00 UTC · €119.5/MWh average12:00 UTC · €115.7/MWh average13:00 UTC · €114.0/MWh average14:00 UTC · €117.1/MWh average15:00 UTC · €131.9/MWh average16:00 UTC · €158.7/MWh average17:00 UTC · €180.4/MWh average18:00 UTC · €183.1/MWh average19:00 UTC · €176.2/MWh average20:00 UTC · €165.3/MWh average21:00 UTC · €149.4/MWh average22:00 UTC · €133.6/MWh average23:00 UTC · €124.3/MWh average0006121823€183Flat 24/7 load, spot €136.9National load profile €138.7Wind earns €116.7

In the day-ahead market, offers are ranked from cheapest to dearest and the price in each half-hour is set where that stack meets demand, so on still evenings older gas plant sets a high price and on windy nights the price falls. Across the last 12 months (2025-10-04 to 2026-10-09) the Irish price averaged €136.9/MWh, with 13.1% of half-hours above €200. A flat load like a data centre buying at spot prices would pay that time average, 1.3% below what the national demand profile paid (€138.7). Wind earned €116.7 because it produces most when prices are low; a flat load still has to buy power when the wind is not blowing, so a wind contract alone does not cover it. Most large users hedge, so this is a spot benchmark, not what any site pays.

EstimatePanel 1 is a schematic of how a pay-as-clear auction works (general description, unchecked against the SEM rulebook; "often" is not measured here). Energy prices only: bills add network, capacity, PSO, taxes and supplier margin.

Sources: SEMOpx day-ahead market results (ROI half-hourly index price), 2026-10-09 · EirGrid Smart Grid Dashboard (demand and wind weights), 2026-10-10

The PSO levy: households pay more than their energy share

The CRU shares out the PSO levy by each customer group's contribution to peak demand. Data centres run flat around the clock, so they add little to the peak. In 2025/26 households carried 34.2% of the levy while using 27.5% of metered electricity (CSO MEC05). Medium and large users, including data centres, carried 55.7% while using about 62%.

The amounts are small. The 2025/26 levy was €162m (revised to €125m from December 2025), €2.01 a month per household before the cut. Sharing it by energy instead would take roughly €5 a year off each household (our estimate). The levy shrinks when wholesale prices are high, because renewable support then pays out less.

Network charges: rose faster for big users, now reversing

The Irish Examiner reported that large energy users' network charges rose 175%, against 45% for households. The CRU's PR6 impact tables reproduce the +175% exactly for its "extra-large energy user" archetype (190 GWh a year, data-centre sized): €2.45m in 2020-21 to €6.76m in 2024-25. The household archetype went from €293 to €384, +31%. We could not reproduce the +45%; it may use 2025-26 tariffs (unchecked).

CRU archetype2020-21 → 2024-252024-25 → 2029-30
Extra-large energy user+175%−20%
Household+31%+15%

CRU2025198, PR6 Final Determination, Impact Analysis Note (Tables 1, 16, 17). Archetypes are illustrative customers, not averages.

From 2024-25 to 2029-30 the CRU projects the reverse: extra-large users down 20%, households up 15%, as transmission charges (paid mostly by big users) fall and distribution charges rise. Network costs were 31.8% of a typical household bill in the CRU's 2020 factsheet.

A Trinity College study reported by the Irish Times argues that connection rules leave households paying for reinforcement data centres caused. No public data splits reinforcement cost by the customer who caused it, so that claim can't be tested. One supporting fact checks out: the CRU said new capacity at Castlebaggot 220 kV, planned for housing and west Dublin growth, was "almost entirely used by data centres".

The claims, checked

ClaimSourceOur rating
Large energy users' network tariffs rose much faster than households': +175% vs +45%, 2020-2026.Irish Examiner, Sep 2026mostly accurate
CRU rules socialise data-centre grid costs onto households; connection fees don't cover reinforcement (TCD, 'By Design, Not by Default').Irish Times, Sep 2026can't be tested with public data
Data-centre demand pushed up wholesale prices: ~EUR 360 per household over 2015-2023.RTÉ, May 2026mostly accurate
Data centres added ~EUR 360 to the average household's electricity costs over 2015-2023 (EUR 263 in 2021-23) and will add EUR 295-644 over 2025-2034.Friends of the Earth Ireland, May 2026mostly accurate
Data-centre demand raises power-system costs by 6% (carbon policy) to 9-15% (renewable targets).ESRI, Apr 2020can't be tested with public data
The PSO levy is allocated by contribution to peak demand, so households and SMEs pick up part of the extra renewable subsidy that data-centre demand creates.ESRI, Jun 2019mostly accurate

Why it matters

Our reading. Our verdict on "data centres are making my bill higher" is partly true (size uncertain). The wholesale effect is real in direction but modelled, not measured, and the best available method gives an upper-end figure. The levy split leans slightly against households; network charges leaned against big users until now and are set to lean the other way. A measured answer would need the CRU or suppliers to publish how wholesale costs and network investment are passed through to each customer group.

Questions people ask

Do data centres increase electricity prices in Ireland?
Probably, through wholesale prices, by an uncertain amount. Rerunning the Friends of the Earth model gives about €112–128 per household a year for Oct 2025–Sep 2026, a short-run, upper-end estimate (StackPath, Oct 2026).
Is the €360 per household figure right?
It reproduces in size: our rerun of the same method on independent data gives €293 for 2021–23 against the study's €263. It is a model that holds imports and plant fixed, not a measured bill impact.
Do households pay more of the PSO levy because of data centres?
The levy is shared by peak demand, so households paid 34.2% of it in 2025/26 while using 27.5% of electricity. Sharing by energy would save each household about €5 a year (CRU2025108; our estimate).
Do data centres pay more for the network?
Large users' network charges rose 175% from 2020-21 to 2024-25 against 31% for households, but the CRU projects large users −20% and households +15% to 2029-30 (CRU2025198).

How we know

  • Wholesale: residual-demand regression of price on demand minus wind (the Fearon method), rerun on Ember hourly prices with EirGrid demand and wind (2020–24) and on SEMOpx with EirGrid (Oct 2025–Sep 2026). Household = 3,682 kWh a year. Estimates with the same structural limits as the original.
  • PSO and network figures read from CRU decision tables; energy shares from CSO MEC05. Each press claim tested as stated; ratings: accurate, mostly accurate, misleading, wrong, or can't be tested.

Sources

Numbers on this page are read from our data build of 10 October 2026 and update when it changes. Text marked Our reading is our analysis, not a sourced fact. Found a mistake? See corrections; method notes are on methodology.