Ongoing Debate Concerning Data Centres in Ireland:

The debate concerning data centres in Ireland revolves around several key issues, including their environmental impact, energy consumption, economic benefits, and infrastructural strain.

In a recent statement by Peter Lantry, Managing Director of Equinix's data centre group in Ireland, concerns have been raised about a potential 'techxit' looming over Ireland—a departure of foreign direct investment from the tech sector. Mr. Langtry went on to say that Ireland used to be one of the major economic centres of Europe, however we are not being considered now because of our inability to facilitate the FDI that for so long has been central to our economy and if Ireland does not change course on this quickly, it will be left behind.

It is widely acknowledged that data centres consume significant amounts of electricity. EirGrid, the semi-State company responsible for managing Ireland's electricity network, forecasts that by 2026, data centres will consume nearly 26% of the nation's electricity demand.

Equinix operates five data centres in Dublin, with approximately 80 data centres operating throughout Ireland, primarily concentrated in and around the capital city. However, despite the possibility of obtaining planning permission for new data centres in the Dublin area, there's effectively a moratorium on connecting them to the electricity grid until 2028.

Major global players such as Amazon, Microsoft, Google, and Meta have substantial data centre operations in Ireland to meet the growing demand for online services. As advancements in artificial intelligence continue, the demand for data centres is expected to escalate further.

What are the key concerns?

Environmental Impact: Data centres are known to consume significant amounts of energy and contribute to carbon emissions. Concerns have been raised about the environmental impact of large-scale data centres in Ireland, particularly in terms of their energy consumption and the resulting carbon footprint. Much debate has already taken place arguing that the energy-intensive nature of data centres could undermine Ireland's efforts to reduce greenhouse gas emissions and combat climate change. On the other hand, whether we like it or not Data Centres are here to stay and are essential in enabling daily use of everyday digital technologies.

Energy Consumption: Data centres require vast amounts of electricity to power and cool the servers. Ireland's abundant supply of renewable energy, particularly wind power, has attracted data centre investments. However, there are concerns that the increasing number of data centres could strain the country's electricity infrastructure and lead to not only further higher energy prices for consumers but interruptions in supply.

Economic Benefits vs. Environmental Concerns: Proponents of data centres argue that they bring significant economic benefits to Ireland, including job creation, investment, and revenue generation. Data centre operators often highlight their commitments to sustainability and efforts to minimise their environmental impact through energy-efficient designs and renewable energy sources. However, some critics maintain that the economic benefits may not outweigh the environmental costs, especially if data centres continue to expand rapidly without adequate regulation.

Regulatory Framework: There are ongoing debates about the need for stricter regulation and planning controls for data centres in Ireland. Many commentators say that current regulations are inadequate in addressing the environmental and infrastructural challenges they bring. They call for more rigorous planning processes, environmental impact assessments, and requirements for data centre operators to use renewable energy and implement energy-efficient technologies.

What does the Fingal Development Plan 2023-2029 say:

Objective DMSO92 – Space Extensive Developments:-

Proposals for space extensive developments such as data centres are required to address the following:

Energy efficiency measures for the development to reduce the carbon footprint in support of national targets towards a net zero carbon economy, including renewable energy generation.
The extent of energy demand and proximity to multiple high voltage strategic grid connections with significant electricity supply capacity available, including areas with high concentration of renewable energy electricity generators.
The availability of appropriate infrastructure such as high voltage electricity, fibre optic cables, water and wastewater etc. to support the use as a data centre.
Measures to support the just transition to a circular economy.
Measures to facilitate district heating or heat networks where excess heat is produced.
High-quality design approach to buildings which reduces the massing and visual impact of same. A visual impact assessment may be required in some circumstances, depending on the specific site.
Details of employment numbers once operational. ¨
Details of the levels of traffic to and from the site at construction and operation stage.
Evidence of sign up to the Climate Neutral Data Centre Pact.
A decommissioning report which sets out the development strategy for the site if and when the data centre is no longer in use, in order to bring the site back to a future developable state.
The principles for Sustainable Data Centre Development as per the Government Statement on the Role of Data Centres in Ireland’s Enterprise Strategy (July 2022).

What does the Government Statement on the Role of Data Centres in Ireland’s Enterprise Strategy say:

Government policy seeks to enable the ’twin transitions’ of digitalisation and decarbonisation of the economy and society. These transitions can - and must be - complementary. For this to happen, digital and climate change policies need to move in tandem and the Statement sets out how this will be achieved in respect of data centres.

The Government has a set of national principles that should inform and guide decisions on future data centre development. These are:

Economic Impact: data centre developments associated with strong economic activity and employment.
Grid capacity and efficiency: data centres that make efficient use of the electricity grid, using available capacity and alleviating constraints.
Renewables additionality: data centres that can demonstrate the additionality of their renewable energy use in Ireland.
Co-location or proximity with future-proof energy supply: data centre development in locations where there is the potential to co-locate a renewable generation facility or advanced storage with the data centre, supported by a Corporate Power Purchase Agreements, private wire or other arrangement.
Decarbonised Data Centres by design: data centres that can demonstrate a clear pathway to decarbonise and ultimately provide net zero data services.
SME Access and Community Benefits: data centres that provide opportunities for community engagement and assist SME’s, both at the construction phase and throughout the data centre lifecycle.

Overall, the debate surrounding data centres in Ireland reflects broader discussions about the balance between economic development, environmental sustainability, and the need for effective regulation in the digital age. Finding a compromise that maximises the economic benefits of data centres while minimising their environmental impact and addressing infrastructural concerns remains a significant challenge for policymakers, stakeholders and those wishing to invest in Ireland.