Ireland’s booming datacentre industry, fueled by giants like Amazon and Meta, is facing scrutiny for its potential impact on the nation’s climate goals. Campaigners warn that Ireland is becoming a “data dumping ground” for these companies, leading to unsustainable energy consumption.

Datacenters Fuel Rapid Energy Demand Growth

Independent research commissioned by Friends of the Earth reveals a startling trend: datacentre energy consumption in Ireland has skyrocketed. Between 2017 and 2023, datacenters consumed the same amount of energy generated by wind power over the entire period. This rapid growth threatens Ireland’s legally binding decarbonisation commitments.

Professor Hannah Daly, the report’s author and expert in sustainable energy, highlights the alarming disparity: electricity demand from datacenters surged by 22.6% since 2015, compared to a mere 0.4% increase for other industrial sectors.

Daly predicts that by 2030, datacentre energy demand could exceed Ireland’s entire industrial sector’s consumption under high-demand scenarios. Government data further underscores this concern, showing datacentre energy use rising from 5% in 2015 to 21% of national consumption in 2023.

Reliance on Fossil Fuels Raises Concerns

Adding to the alarm, Daly’s research reveals that numerous datacenters are seeking connections to the natural gas network, primarily reliant on imports from the UK and Norway. This reliance on fossil fuels directly contradicts Ireland’s goal of transitioning away from polluting energy sources.

“This prolongs Ireland’s dependency on fossil fuels and makes achieving legally binding carbon budgets impossible,” Daly warns. “Policy interventions are urgently needed to ensure renewables displace fossil fuels rather than fueling new demand.”

Call for Policy Change Amid EU Scrutiny

Friends of the Earth urges the Irish government to reconsider its datacentre expansion policy. Jerry Mac Evilly, head of policy change at the charity, criticizes the government’s approach, stating, “They are adding more fuel to the fire and increasing reliance on fossil gas and the gas network.”

Mac Evilly emphasizes that renewable energy investments, intended to reduce reliance on fossil fuels, are being diverted to serve the insatiable demands of the datacentre industry.

The spotlight on datacentre energy consumption intensifies with the EU’s upcoming AI Act, requiring countries to publish figures on energy use for general-purpose AI. Additionally, the EU is finalizing rules to monitor datacentre energy performance, including their energy and water footprint.

A Debate Continues

Despite growing concerns, former Eirgrid CEO defends Ireland’s datacentre expansion, arguing that the demand is “healthy” for a growing economy and will contribute to financing offshore wind farms. He maintains that projected power demand increases are manageable if Ireland achieves the 50% energy generation growth target recommended by Eirgrid.

However, the debate surrounding Ireland’s datacentre boom continues, raising crucial questions about balancing economic growth with environmental sustainability.

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