Data Centre Growth Threatens Ireland’s Climate Targets

The expansion of data centres in the upcoming government’s programme could be a critical indicator of their commitment to addressing climate change. The current surge in data centre development is heavily reliant on fossil fuels, which undermines Ireland’s efforts to reduce greenhouse gas emissions.

Data Centres Driving Fossil Fuel Dependence

Recent research suggests that data centres have become the primary driver of electricity demand growth in Ireland since 2015. Despite assertions that this sector supports environmental goals, evidence indicates that data centres are actually increasing fossil fuel consumption rather than facilitating a green transition.

Renewable Energy Not Making a Significant Impact

A study reveals that between 2020 and 2023, wind energy purchases related to data centres covered only 16% of the increase in their electricity needs. Moreover, for every additional kilowatt hour of wind power generated, the demand from data centres grows proportionally, meaning renewables are not displacing fossil fuels but rather accommodating their expansion.

Increasing Reliance on Natural Gas

The reliance on natural gas by data centres is a growing concern. The projection by Gas Networks Ireland (GNI) estimates that connected data centres will consume three terawatt hours (TWh) of natural gas by 2031, leading to 2.6 million tonnes of CO2 emissions over the next decade. These emissions are part of the services sector’s carbon limit, a factor not yet included in EPA projections or the Climate Action Plan.

Pending Gas Connections Pose Serious Risks

Dozens of data centres seeking gas connections represent a significant risk. Collectively, these inquiries equate to more than six times the current connected capacity. Approving these connections could increase reliance on fossil fuels, compromising energy security and leaving Ireland far from achieving its carbon targets.

Gas Networks Ireland’s Role in Regulation

Gas Networks Ireland is currently withholding new gas connections, as instructed by Minister for Energy Eamon Ryan, pending the Commission for Regulation of Utilities’ (CRU) Large Energy Users Connection Policy. This policy will determine how well future demands align with climate objectives, effectively testing the robustness of climate legislation and the enforceability of carbon budgets.

Economic Growth vs. Environmental Sustainability

Critics argue that restricting data centre growth could drive the industry elsewhere, potentially leading to worse environmental impacts. This viewpoint mirrors debates around the decarbonisation of other sectors like agriculture. However, the costs of exceeding EU emissions targets could reach €20 billion by 2030, as warned by the Irish Fiscal Advisory Council.

Climate Change Advisory Council’s Urgent Call

The Climate Change Advisory Council’s emphasis on urgent fossil fuel reduction highlights that any excess emissions must be deducted from future budgets. Ignoring these commitments not only incurs financial penalties but disrupts the broader societal effort to reduce consumption across all sectors.

Global Challenges Ahead

The rise of artificial intelligence (AI) is expected to fuel a new era of electricity demand, limited only by network capacity and new power generation. Ireland’s experience with data centres may signal similar challenges globally, underscoring the importance of aligning economic growth with environmental sustainability.

A Call for Rethinking Growth

Calls for reconsidering data centre expansion have often been met with criticism, sometimes dismissed as based on flawed ideologies. However, these critics might reflect on their own biases, which often prioritize economic growth over environmental protection.

Hannah Daly, Professor of Sustainable Energy at University College Cork, puts it succinctly: “Unchecked data centre growth threatens Ireland’s climate goals and energy security. It’s time to rethink the current approach.”

What Can Be Done?

Addressing the growing issue requires a balanced approach that considers both economic benefits and environmental impacts. This includes stringent regulations on energy efficiency, greater investment in renewable energy sources, and policies that encourage the adoption of sustainable practices within the data centre industry.

It is crucial for policymakers to recognize the stark reality: continuing to expand data centres without addressing their high carbon footprint will not only compromise Ireland’s climate ambitions but also lead to substantial future costs and economic disruption.

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