I thank the Cathaoirleach, Deputies and Senators for the invitation to appear before the committee. As this is the first occasion on which the CRU has appeared before this committee, I would like to express our appreciation for the opportunity to engage with members on the important topic of artificial intelligence and its implications for the sectors we regulate.
The CRU is Ireland's independent regulator for energy, energy safety and water services. Our role is to protect the public interest by ensuring that essential utility services are delivered safely, securely, sustainably and in the interests of consumers. As the regulator of sectors that underpin homes, businesses and critical national infrastructure, our work has a direct impact on citizens and the wider economy.
Technological innovation is transforming the energy and utility sectors at an unprecedented pace. Digitalisation, advanced analytics and artificial intelligence are increasingly being deployed across networks, infrastructure management, customer services and system operation. These developments present significant opportunities to improve efficiency, support the energy transition, enhance security of supply and deliver better outcomes for consumers.
At the same time, the adoption of AI and related technologies raises important questions around governance, transparency, accountability, cybersecurity, resilience and consumer protection. While the role of the CRU is not currently fully defined in relation to AI regulation, we have a strong interest in understanding how these technologies are being deployed within the sectors we oversee and in ensuring that innovation is implemented in a manner that supports safe, secure and reliable services.
As Ireland continues its transition to a more digital and decarbonised economy, it will be important that innovation is accompanied by robust governance and effective oversight. The CRU looks forward to contributing to this discussion and to sharing our perspectives on the opportunities and challenges that AI presents for regulated utility sectors.
AI presents significant opportunities for economic growth, innovation and productivity. However, it also raises important questions about the infrastructure required to support it, particularly in relation to electricity and gas demand and the development of data centres. Data centres already represent a significant and growing component of Ireland's electricity system. Their share of national electricity consumption has increased from approximately 5% in 2015 to around 23% in 2025. Looking ahead, EirGrid's most recent resource adequacy assessment projects that, under its median demand scenario, data centres and other new technology loads could account for approximately 35% of Ireland's electricity requirement by 2035, based on existing connection agreements and contracted demand.
To understand the implications of this growth, it is useful to briefly outline how the electricity system operates. Ireland's power system is managed by two system operators. EirGrid is responsible for the operation of the high-voltage transmission network and maintaining real-time balance between electricity supply and demand, while ESB Networks operates the distribution network serving homes and most businesses. Large energy users, including many data centres, may connect at either transmission or distribution level, depending on their scale and technical requirements. The CRU's role is to regulate these networks and the market framework within which they operate.
The growth in data centre demand presents several key challenges for the electricity system. These include maintaining security of supply, managing network constraints, delivering infrastructure at sufficient pace, safeguarding affordability for consumers, and ensuring continued progress towards Ireland's decarbonisation objectives. While these challenges are not unique to data centres, they are particularly acute because of the scale, concentration and continuous demand profile associated with such facilities. These challenges are further tested where the delivery of the infrastructure required to facilitate data centre growth across networks, generation and storage technologies, typically takes longer than for the data centres themselves. In response to these challenges, the CRU has developed a regulatory framework designed to ensure that new large energy users can connect to the electricity system without compromising security of supply and through alignment with broader public policy objectives.
In 2021, the CRU directed EirGrid to assess data centre connection applications against a range of criteria, including location, demand flexibility and the ability to provide on-site generation or storage. Building on this approach, the CRU published its large energy users connection policy in December 2025. This policy establishes a structured framework for assessing new data centres. Its objectives are to address system constraints and security of supply risks, support renewable energy objectives, minimise impacts on carbon emissions and provide greater certainty for investment decisions. The policy requires qualifying facilities to contribute generation and-or storage capacity and to support the integration of renewable energy on to the system. The committee's focus on artificial intelligence is particularly relevant in this context. AI-focused data centres are not fundamentally different from traditional data centres, but they are significantly more energy intensive.
According to the International Energy Agency, while conventional data centres often require between 10 MW and 25 MW of power, large AI-focused facilities can exceed 100 MW in demand, with annual electricity consumption comparable to that of around 100,000 households. As AI models continue to grow in complexity and scale, the electricity requirements of supporting infrastructure are expected to increase correspondingly. This is not solely an Irish phenomenon. Across Europe, North America and Asia, governments and regulators are grappling with the energy implications of rapid growth in AI and digital services. Global investment in data centre capacity is accelerating, driven largely by AI adoption, and many jurisdictions face similar challenges in balancing economic opportunity with energy security, network capacity and climate objectives.
In Ireland, the regulatory framework sits within a wider Government policy context. The Government's large energy user action plan, which was published in January, sets out a strategic approach to the development of energy-intensive sectors, including data centres. It seeks to align electricity demand with renewable energy development, support balanced regional growth, co-ordinate infrastructure planning, and protect security of supply and affordability.
The CRU recognises the important role that digital infrastructure, including AI-related investment, can play in Ireland's future economy. However, future growth must be delivered in a way that maintains the security and resilience of the electricity system, supports Ireland's climate ambitions, reflects the capabilities and constraints of the electricity network and protects the interests of consumers.
The CRU's remit is expanding in relation to developments in artificial intelligence. Under the EU AI Act, the CRU is expected to assume responsibilities for the oversight of certain high-risk AI systems deployed within the energy and water sectors. This is in addition to our existing regulatory responsibilities in relation to energy security, resilience and customer protection. In addition, the CRU has recently been designated as a competent authority under the network and information security, NIS, 2 framework, adding to our existing role in supporting the security and resilience of critical infrastructure as digital technologies become increasingly embedded across the sectors we regulate.
The CRU would also like to draw the committee's attention to a number of recent publications and decisions that are relevant to today's discussion and that provide further detail on how Ireland's regulatory framework is responding to growing electricity demand, digitalisation and the energy implications of large energy users. These are: the large energy users connection policy, which establishes the framework for assessing new large-demand customers, including data centres, while protecting security of supply and supporting decarbonisation objectives; the price review, PR, 6, which sets the revenues and investment framework for electricity and gas network operators to support the significant infrastructure development required to deliver Ireland's energy transition; the fault ride through decision, which strengthens the resilience and stability of the electricity system by setting technical requirements for large-demand facilities connected to the transmission and distribution networks; the interruptible gas connections consultation, which examines proposals to provide certain future large gas connections, on an interruptible basis, to help protect security of supply, support electricity system resilience and manage future demand on the gas network while safeguarding supplies to priority customers; and the electricity network tariff review project, which examines how network charges can evolve to support changing patterns of electricity demand, network usage and the transition to a more decarbonised energy system.
Copies of these publications, together with website links and the relevant consultation documents, can be provided to the committee for reference. We look forward to assisting the committee in its examination of these issues and will be pleased to answer any questions.
