Data Centres Are Getting Discounted Gas Rates
Data Centres Are Getting Discounted Gas Rates
Text: Izzy Copestake
Ireland already has some of the most expensive gas prices in the EU.
Data Centres in Ireland are going to get cut-price gas in exchange for accepting the possibility of disruption to their supply during ‘extreme cold events’. This move has come after the Commission for Regulation of Utilities (CRU) warned that Ireland’s rapid data centre expansion will likely make it difficult for the country to source sufficient gas to meet national demand during extreme cold events during the winter months.
The proposed deal states that new data centres will get discounted gas rates on the condition that they accept, when gas demand is particularly high they may experience some planned interruptions. During these moments they will have to temporarily power down, postpone energy intensive operations or use an alternative fuel source like diesel. The level of the discount has not been publicly specified.
“Rather than nip the problem in the bud by imposing a moratorium on data centres connecting to the gas grid, the CRU wants to roll out the red carpet for them,” said Sinn Féin MEP Lynn Boylan.
Ireland has previously had a pause (moratorium) on new data-centre grid connections due to the strain this put on the national electricity supply. This moratorium was lifted, but purely on the condition that new data centres provide their own power. This will be done in the long term by a shift to renewable energy, but in the short term these data centres use on-site gas generators.
But now we are seeing that this could also cause immense strain on the country’s gas supplies, according to CRU. During a severe cold snap, this shortfall could reach roughly 9-18% once 17 new data centres currently seeking gas grid connections are added to the system. Gas Networks Ireland is legally required to connect them.
“Instead of saying to big tech enough is enough, they want to give them anything they want regardless of the impact on the public and climate,” said Sinn Féin MEP Lynn Boylan.
Ireland already has some of the most expensive gas prices in the EU, and thousands of families across the country are already struggling with energy costs. And yet, it’s the data centres who are getting gas discounts in exchange for accepting gas shortages which their own existence caused.
