Technology companies will have to “work within the climate limits,” according to Ireland’s environment minister, as the nation, a significant hub for data centres, tackles the surge of energy demands arising from these energy-intensive systems.
Eamon Ryan, the Minister for the Environment, Climate, and Communications, has recently engaged with all major technology companies as Ireland’s national energy systems continue to face the immense strain imposed by the computational power required for generative artificial intelligence. The International Energy Agency projects that global electricity demand from data centres will at least double by 2026, raising concerns regarding the reduction of greenhouse gas emissions from energy.
Ireland hosts over 80 data centres, predominantly around Dublin, attracted by the region’s fibre cable access to the US and Europe, alongside its cool climate and clean water. However, in 2021, due to energy constraints, the country implemented an effective ban on new data centre constructions in the greater Dublin area. In 2023, data centres consumed more than a fifth of Ireland’s electricity, surpassing the combined electricity usage of homes in its towns and cities.
In an interview with the Financial Times, Ryan outlined Ireland’s intent to “facilitate data centres” in a manner that benefits the companies while adhering to climate commitments and ensuring secure power supply. Highlighting the engineering and economic challenges involved, Ryan emphasized that no sector is exempt from addressing the climate challenge.
Amazon Web Services, which maintains significant facilities in Ireland, announced plans to invest £8 billion over five years in the UK for data centre development and additional European projects outside of Ireland. The Irish regulator, the Commission for Regulation of Utilities, is anticipated to release a report in October detailing the country’s future policies on large energy interconnections.
Ryan, who stepped down as the Green Party leader earlier this year and will not contest in Ireland’s next election, expressed his hope that Ireland’s energy policies might help set international standards that account for climate limits. He recommended that data centre owners invest in their renewable energy and battery storage solutions, along with enhancing flexibility and efficiency in power demand management.
In recent discussions with UK counterpart Ed Miliband, Ryan explored the possibility of constructing more interconnectors to link the UK’s and Ireland’s electricity grids, supporting renewable energy efforts. The Greenlink cable, anticipated to be operational next month, is expected to become the third interconnector between Britain and Ireland.
Ryan identified energy as a critical area for strengthening collaboration between Britain and Ireland, particularly in light of potential post-Brexit governmental changes. Earlier this year, Ireland, the UK, and Belgium signed a letter of agreement to develop Europe’s first hybrid electricity interconnector among the three countries. By 2030, Ireland aims to generate enough renewable energy to export excess power, presenting a substantial opportunity for international energy customers.
