The Future of Ireland’s Data Centres: Opportunities and Challenges Ahead

Data centres play a pivotal role in supporting our everyday activities. They enable the functioning of various services, from entertaining YouTube videos to important banking and healthcare operations. The reliance on data centres is evident in the continuous expansion of technology, with energy-demanding innovations like artificial intelligence. Consequently, the necessity for data centres is only anticipated to increase in the future.

Given their essential role, it is crucial to consider the locations for establishing these facilities. Considering the expanding importance of data centres, Ireland presents a strong case as an ideal location for their establishment.

Data centres generate an immense amount of heat, necessitating significant expenses in money and ways to keep them cool, especially in hotter climates. This results in increased carbon emissions, which contribute to climate change. However, in countries with cooler climates like Ireland, this becomes less of an issue. Consequently, data centres built in Ireland require fewer resources and have a smaller environmental impact compared to those in hotter nations.

Moreover, Ireland is an attractive location for data centres due to the presence of major companies such as Google, Amazon, and Microsoft with significant operations and European headquarters in the country. Additionally, its strategic positioning between the US and Europe makes it an ideal location for data centres.

The roughly 80 data centres in Ireland consume around one-fifth of the country’s total electricity, equivalent to the combined energy usage of all urban households nationwide.

In recent news, Google’s plans to construct a data centre in Dublin were rejected last week due to worries about the strain it would place on Ireland’s national power grid.

What’s next for Data Centres in Ireland?

Based on the workings of the modern economy, there is a growing need for the construction of more data centres. Ireland is being considered an ideal location for this purpose, due to its lower emissions and is even seen as having a ‘global responsibility’ to host these facilities.

Tech companies are moving at full speed ahead with this plan. Last year, reports indicated that 14 data centres were under construction in Ireland, with plans approved for an additional 40.

However, South Dublin County Council’s decision highlights a potential issue. It suggests that Ireland’s status as an optimal data centre location may clash with the limitations of the country’s ageing power grid.

Moreover, there is a looming concern that Ireland may incur EU emissions fines, which could be largely attributed to data centre emissions.