Annually, the Central Statistics Office publishes a startling set of figures that continue to astonish. The portion of metered electricity used by data centres in Ireland has reached a staggering 21% of all metered power, a remarkable surge from its 5% portion back in 2015. The proportion of electricity used in urban homes has seen a slight decline over the years, decreasing from 19% in 2022 to 18% in 2023, a trend that hasn’t been replicated in rural homes, where the consumption remains steady at 10%. Shockingly, data centres are currently using double the amount of metered electricity than all rural residences combined in Ireland.
This trend is not expected to plateau or reduce. With the advent of generative AI leading to an increased need of data centres and resultant rise in power usage, the strain on Ireland’s electricity supply is anticipated to exceed manageable levels. The Government will at some point have to face the harsh reality and stop being swayed by data centre companies and Big Tech’s spin that it seems to use as policy.
Against the backdrop of these startling statistics, the growth of the industry in Ireland, reaching approximately 82 data centres with majority in Dublin, is rarely talked about. Furthermore, 14 additional data centres are under construction with plans for around 40 more given approval. The Irish Government plays a vital role in advocating for the data centre industry, often echoing the industry narratives, a stance shared by politicians from Fianna Fáil, Fine Gael, and surprisingly, the Green Party. The relative simplicity with which the data centre industry took root in Ireland is indeed extraordinary.
However, this explosion in data centre growth should be presented for what it truly is: the most unparalleled industrial development project the country has ever witnessed, in terms of its swift expansion, its significant energy needs and its astronomical profit margins. The notion of limitless development and unending energy usage at a time when the global conversation should focus on energy reduction is quite twisted. This is an issue that needs urgent addressing.
The debate on the privatisation of renewable energy resources, particularly wind farms in Ireland that are under the ownership of large tech companies, merits our attention. Central to the philosophy of energy sustainability is the substitution of fossil fuels with clean energy, rather than generating more energy for the sake of using more. Hence, the question arises; what exactly is the blueprint moving forward? Shouldn’t our vision encompass more than the immediate year or decade? Indeed, the prevailing trend is that high-energy-consuming data centres are increasingly influencing how energy infrastructures are designed. Such high energy demand from these centres is counter productive, as it slows down the process of turning grids green and lengthens the lifespan of plants dependent on fossil fuels.
Profit for private entities underpins this whole situation. Starwood Capital, a US-based property investor, disclosed its decision to invest a staggering €788 million in Echelon, an Irish-owned data centre firm, in February. Two months later, Winthrop, an Irish data centre construction firm which reported pre-tax profits exceeding €86 million in 2023, had majority stakes acquired by Blackstone.
Taking a glance at the lobbying register reveals the substantial influence of data centre lobbyists. On the other side of this, one might find an unexpected resistance army: nuns. The Sisters of Mercy and Presentation Sisters have tried to draw politicians’ attention to the potential damaging effects of the proliferation of data centres in Ireland. Despite the narrative charm of nuns confronting the data centre industry, their lobbyists, large tech companies, and the advent of AI (a potential plot of a Netflix show, which would be a delight to pen), we will likely require more than these environmentally-minded sisters to make a difference.
The magnitude of this problem seems insurmountable. We are tied into this situation. The data centre industry required multiple entry points, and in Ireland, it found an ideal one. Not only does Ireland have a mild climate and low incidence of seismic activity, but its government is also perceived as exceedingly compliant. Moreover, the country’s lobbying environment fosters a seamless movement between politics and the tech industry.
Data centre expansion in this region is proceeding at an unrestrained pace. What ramifications could this have? Although some local government officials vote against these developments, they are invariably overruled. There are journalists who strive to shine a light on this unchecked situation, yet industry insiders and politicians counteract our efforts. Other ‘business-friendly’ observers nonchalantly dismiss the concerns, claiming that “data centres need to be located somewhere,” or implying that internet users are in no position to raise any objections.
Nonetheless, there are repercussions that must not be overlooked, and must be anticipated. What does our national energy strategy entail? Are our climate and emissions goals achievable amidst this data centre surge? What are the plans for the national grid? Can a small nation shoulder such extensive responsibilities? How can we persuade individuals that their minor efforts towards reducing energy consumption and abandoning fossil fuels are meaningful when data centres are consuming such massive amounts of energy?
Can the insatiable quest for artificial intelligence and the computing power it necessitates be curtailed? While I may not have all the solutions, I firmly believe in the importance of posing these questions.