There has been a renewed focus on data centres this week following a report by University College Cork, commissioned by Friends of the Earth. Its findings are stark. The demand for electricity from data centres has grown by almost 23 per cent annually since 2015. That compares with an annual growth rate of less than 0.5 per cent among other sectors.
Furthermore, demand for electricity from data centres is set to intensify in the years ahead due to increasing demand for computing power to drive the development of of artificial intelligence. The report points out that all the additional electricity generated by wind energy between 2017 and last year has been used entirely by data centres. On that basis, it concludes, Ireland’s ability to reach its legally binding CO2 reduction targets by 2030 would be fatally undermined by the continued growth of data centres.
Given the existential threat posed by climate change, and the financial penalties attached to failure to meet those targets, the incoming government will have to prioritise the issue.
But the economic case is also worth considering. The focus on data centres is due in part to Ireland’s creaking energy infrastructure, which has prompted legitimate concerns that multinationals will look elsewhere for future investment.This would be tantamount to self-sabotage for a country that relies so heavily on FDI for its prosperity.
Writing in The Irish Times this week, Mark White, a marine energy consultant, argued that with the right policy framework and efficient planning, Ireland could reach 5 gigawatts (GW) of installed wind energy capacity by 2030 and 37GW by 2050. If this were to happen then Ireland would reach its C02 reduction targets and potentially become a net exporter of green electricity.
A review of the current data centre policy’s compatibility with climate targets targets is essential. As it stands there is very little scope for future growth in the sector. The next government must ensure Ireland reaches its full wind energy potential. At least then, decisions can be made that will limit future economic blowback.
