Data centres set to double power demand by end of decade

Data centres

Data centres are set to double their power demand in Ireland by the end of the decade, a new study has found.

However, the research also suggests they could play a “critical role” in enabling more renewable energy.

Large data centers in Ireland are projected to draw 1.1GW (gigawatts) in "live IT power" demand in 2030, up from 0.54GW at the end of 2021, according to a new study published by research company BloombergNEF (BNEF) in partnership with power management company Eaton and hydropower company Statkraft.

That figure is based on a central scenario; but the report also outlines a more aggressive growth scenario in which power demands exceed 1.5GW by 2030, three times the current rate.

In addition to this, the report finds that data centres could be responsible for using 24% of Ireland’s electricity by 2030.

The study, Data Centers and Decarbonization: Unlocking Flexibility in Europe's Data Centers, explores the growth of data centers across five markets — Britain, Germany, Ireland, Norway, and the Netherlands.

Integration of renewables

While generally viewed as a source of demand on the energy system, the report argues that data centres could be used to support the grid and for the integration of renewables.

Data centres could provide 16.9GW of flexibility in total across the five markets examined in the report from their on-site uninterruptible power supply (UPS), back-up generation, back-up batteries and load-shifting, the report states.

Ireland makes up 1.2GW of this — the highest proportion of flexibility capacity to peak demand of the five countries surveyed. 

This is due to the country’s high data centre capacity and large proportion of “hyperscale operators” present, the report found.

Michael Kenefick, lead author of the report, highlighted the potential of the centres.

"Their on-site energy resources, such as uninterruptible power supplies and back-up generators, could in future be brought to bear to help support the grid," he said.

"Computing tasks could also be shifted to times — or locations — of high wind and solar resources."

Impact on electricity supply

The impact of data centres on the country’s electricity supply has been in focus in recent weeks.

Currently, there are around 70 data centres in Ireland, with another eight under construction.

The State currently houses the data centres of Amazon, Google, Microsoft, Apple, and Facebook.

The vast majority of centres are in Dublin, but the capital’s electricity grid was not built to cater for such high demand from data centres, which has resulted in network supply constraints.

EirGrid and SONI in Northern Ireland published a generation capacity statement in August, which said data centres require a large amount of power and need the same amount of energy as a large town.

Aoife MacEvilly, chairwoman of the Commission for Regulation of Utilities, recently told politicians that “on the topic of data centres, electricity demand growth from this sector is unlike anything Ireland has seen in the past 100 years”.

Environment minister Eamon Ryan admitted that Ireland is facing "real short-term challenges" with electricity supply, while opposition politicians called for a moratorium on new centres.

However, Taoiseach Micheál Martin signalled he is confident there will be no electricity blackouts this winter arising from capacity pressures that have occurred on the State’s energy grid.