In Ireland, data centers, known for their high energy demands, now consume more than a fifth of the electricity used across EU member states. This surpasses the combined electricity consumption of all urban households in Ireland, as per official figures released.
According to Ireland’s Central Statistics Office (CSO), data centers accounted for 21% of the country’s metered electricity usage in 2023, marking a significant increase from 5% in 2015 and 18% in 2022. This milestone represents the first time that data centers’ electricity consumption has exceeded that of urban homes, which accounted for 18% of Ireland’s electricity usage in 2023.
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Meanwhile, rural households consumed 10% of the country’s electricity. These findings have emerged amidst ongoing debates in Ireland concerning the energy demands of data centers, where extensive computer storage operations are housed.
Concerns are mounting over the strain that data centers exert on the electricity grid, particularly as demand surges and advancements in artificial intelligence (AI) are pursued.
Earlier this year, EirGrid, Ireland’s grid operator, warned that impending “electricity supply challenges” were expected to emerge in the coming decade. These challenges are attributed partly to the increasing demand driven by large energy consumers such as data centers.
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According to a January report from the International Energy Agency, data centers in Ireland are expected to consume almost 30% of the country’s electricity by 2028. This projection comes amidst the operations of major tech companies like Google, Meta, Amazon, and TikTok, which currently oversee over 80 data centers in Ireland. Plans for expansions and new facilities are also underway.
Ireland’s surge in data centers and tech enterprises has been significantly fueled by its policy of maintaining low corporate taxes. This attractive tax regime has drawn major tech giants like Google, Meta, Amazon, and TikTok to establish substantial operations in the country. The low corporate tax rate of 12.5%, combined with favorable business regulations and a highly skilled workforce, has made Ireland an appealing destination for global technology companies.
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