Ireland AI boom: Ireland embraced AI boom, now its data centres consuming too much of its energy

Dozens of massive data centres humming at the outskirts of Dublin are consuming more electricity than all of the urban homes in Ireland and starting to wear out the warm welcome that brought them here. Now, a country that made itself a computing factory for Amazon, Google, Meta, Microsoft and TikTok is wondering whether it was all worth it as tech giants look around the world to build even more data centres to fuel the next wave of artificial intelligence.

Fears of rolling blackouts led Ireland’s grid operator to halt new data centres near Dublin until 2028. These huge buildings and their powerful computers last year consumed 21% of the nation’s electricity, according to official records. No other country has reported a higher burden to the International Energy Agency.

Ireland is a “microcosm of what many countries could be facing over the next decade, particularly with the growth of AI,” said energy researcher Paul Deane of University College Cork.

Dublin’s data centre limits

Twenty-six-year-old activist Darragh Adelaide lives in a working-class Dublin suburb just across a busy motorway from Grange Castle Business Park, one of Ireland’s biggest data centre clusters. It could get even bigger were Adelaide not a thorn in the side of Google’s expansion plans.

“It’s kind of an outrageous number of data centres,” Adelaide said. “People have started to make the connection between the amount of electricity they’re using and electricity prices going up.”

Ireland has attracted global tech companies since the “Celtic Tiger” boom at the turn of the 21st century. Tax incentives, a highly skilled, English-speaking workforce and the country’s membership in the European Union have all contributed to making the tech sector a central part of the Irish economy. Nearly all of the data centres sit on the edge of Dublin, where their proximity to the capital city facilitates activities that require fast connections. Ireland’s cool temperatures also make it easier to keep data centre computers from overheating without drawing in as much water.

Still, buildings that for years went mostly unnoticed have attracted unwanted attention as their power demands surged while Irish householders pay some of Europe’s highest electricity bills. Ireland’s Environmental Protection Agency has also flagged concerns about pollution from data centres’ on-site generators affecting areas near Dublin.

A crackdown began in 2021, spurred by projections that data centres are on pace to take up one-third of Ireland’s electricity in this decade. Regulators declared that Dublin had hit its limits and could no longer plug more data centres into its grid. The government urged tech companies to look outside the capital and find ways to supply their own power.

In June, Adelaide’s campaign against the centres helped get him elected to a seat on the South Dublin County Council for the leftist People Not Profits Party. The council soon after rejected Google’s plan to build another data centre. Google appealed the decision in September.

The backlash from Dublin-area local planning authorities has frustrated data centre developers.

“What’s preventing us from being able to leverage that is the fact that the power constraints that we have, or the power moratorium that we have, is greatly impacting our ability to provide space for customers,” said Dermot Lahey, who directs Digital Realty’s data centre implementation in Ireland.

Moving to the boglands?

Once colder weather sets in, the smoky fragrance of fireplaces burning briquettes of peat lingers over County Offaly, an area west of Dublin in a region known as the Midlands. It’s places like this where some data centre developers, thwarted by Dublin’s constraints, now see opportunity.

A report commissioned by County Offaly’s government pitches the bog-dotted region as a place to “create thousands of green jobs” and rival “Dublin, Frankfurt, London, Amsterdam and Paris in being an anchor for data centres powered by renewable energy”.

Farmer and conservationist Brian Sheridan, 83, is doubtful. He’s seen this region transformed once before, from a vast wetland known as the Bog of Allen to barren pockets of brownfields as people cut away trenches of dense peat soil, or turf, to create homegrown fuel.

“The bog started disappearing and it wasn’t being replaced,” said Sheridan, walking along a boardwalk over carpets of moss and sedges in the now-protected Clara Bog Nature Reserve.

Decades of rapid extraction fostered Ireland’s energy independence and employed scores of workers in turf-cutting, briquette factories and power plants. But it also polluted the air and devastated a delicate environment. Bogs that naturally trapped large amounts of carbon dioxide were stripped down to the bedrock, contributing to global warming. When burned, peat is dirtier than coal.

Ireland has largely banned the sale of peat and shuttered the last remaining peat-fired power plants. But the state-supported company at the helm of peat extraction, Bord na Mona, still controls vast tracts of former bogland. It has refashioned itself as a renewable energy provider, laying down wind turbines and solar farms and partnering with Amazon to build a data centre near the village of Rhode.

Bord na Mona declined multiple interview requests about its plans, and some residents feel left in the dark. Amazon also declined to talk about specific projects and has repeatedly signalled it may shift its new data centre investments away from Ireland.

Could wind save Ireland’s data centres?

A tech-driven race is on to harness the region’s wind. Backed by a power purchase agreement with Microsoft, the Norwegian wind energy company Statkraft is building nine towering wind turbines in remote former boglands along County Offaly’s eastern edge. Statkraft’s managing director for Ireland, Kevin O’Donovan, said data centres are actually helping to accelerate Ireland’s clean energy transition.

“For a lot of the mainland European countries, demand is going down and that’s actually leading to a challenge to roll out renewables,” O’Donovan said. “Whereas in Ireland we have demand that’s increasing because the country is growing economically and obviously a part of that is the data centre growth.”

On the other side of Offaly, a group of residents who live along the Lemanaghan Bog near the site of a 7th-century monastery are sceptical of such claims. They are opposed to what a proposed Bord Na Mona wind farm will do to its cultural heritage and ecology.

KK Kenny took his concerns to Dublin this fall in a meeting with the country’s taoiseach, or prime minister, Simon Harris. Kenny wants to see the bog preserved for biodiversity. He’d be happy to see data centre developers follow through with their pledge to look to other European countries.

“They say, oh, they’re going to pull out,” Kenny said. “That would be a great thing. We can’t sustain them.”

Some neighbours of Amazon’s proposed data centre in Rhode are more open to the idea. One village resident already commutes all the way to Dublin to work at a data centre. Another is hoping it will employ people who’d want to buy new homes.

“We’re all for change,” said Gerard Whelan. “I’ll get work because I build houses. It’s a domino effect.”

What happens next for Ireland’s data centres could depend in part on the new national government coming into power early next year.