Data centres 'help secure 94k Irish jobs’ – Government-commissioned study

While concerns have been raised around the energy consumption, water depletion, and environmental impact of data centres, the KPMG report warns that restrictions could dent Ireland’s ability to attract and retain investment. Stock picture

Ireland must press ahead with building data centres or risk losing up to 94,000 jobs, a report has found.

The study, commissioned by the Department of Enterprise, which will be published this week, warns that if a limit is put on the development of data centres, the State could miss out on €1.6bn in annual employment-related tax revenues by 2030.

Consultants KPMG, which carried out the report, found that the ability of foreign-owned companies which have their European headquarters in Ireland, to establish their own data centre infrastructure here has strengthened Ireland’s ability to retain existing investment from major global players and attract new investors.

'Sticky investment'

Co-located headquarters and data centre capacity creates a “sticky” investment footprint, the report found.

CLIMATE & SUSTAINABILITY HUB

With data centres now critical to the country’s digital sectors — supporting ICT, finance, health, transport, retail, and professional services — the report states that 876,000 jobs could depend on data centre capacity located in Ireland.

However, concerns have been raised around the extreme energy consumption, water depletion, and environmental impact of data centres.

Data centres account for about 20% of electricity consumption, a figure national grid operator EirGrid predicts will exceed 30% by 2030.

The Government has also been warned that households could face higher energy bills because of this greater strain on the grid.

Friends of the Earth last week published research which claims the average household paid an estimated €360 extra for electricity between 2015 and 2023 because of the intensity of data centre presence on the grid.

Calling for a limit on data centres here, the environmental group said the cost for households could intensify dramatically between now and 2034, facing an additional €1.43bn in electricity prices linked to data centre growth — the equivalent of between €295 and €644 extra per household.

Rosi Leonard of Friends of the Earth Ireland said: “Data centres are not only driving up wholesale electricity prices — they are also fuelling Ireland’s dependence on fossil gas and undermining access to clean energy for everyone else.

“The scale of the data centre sector’s grip on Ireland’s energy system is not inevitable. It is the result of political decisions.

“The Government must now introduce a moratorium on new data centres, place firm limits on the expansion of existing facilities, and prioritise the energy security and affordability needs of ordinary people over the interests of big tech.”

The Department of Enterprise-commissioned research acknowledges that further data centre growth would increase demand for electricity, but said that, without sufficient data centre capacity, Ireland risks slower productivity growth, job and investment displacement, reduced competitiveness, and a weakened ability to attract high-tech foreign investment.

• Elaine Loughlin, Political Editor