David McWilliams: We can’t live in a digital age without data centres. Ireland needs more of them

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David McWilliams: We can’t live in a digital age without data centres. Ireland needs more of them
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We need to find a win-win solution based on engineering which is far more ingenious than a simple black and white, yes or no to data centres

Google Ireland's plans to build a new data centre in Dublin were halted after it was denied planning permission due to concerns over insufficient capacity in the local power grid. Photograph: Mark Stedman/RollingNews.ie

Data centres are the backbone of the online world. Nothing functions without them. Consider the website where you might be reading this article. How do you think the data gets to you and where do you think it is stored? Data centres are indispensable for maintaining the IT systems of businesses across various sectors, including telecommunications, financial services and government operations, ensuring seamless functioning of everything from ecommerce to emergency services.

, a dramatic rise from just 5 per cent in 2015. This figure is expected to reach 27 per cent by 2028, meaning data centres could soon consume more power than all urban households combined. Because Ireland was out of the blocks early in building data centres, there is a significant amount of data centre construction and engineering expertise in this country. The Irish data centre market amounted to $3.32 billion in investment in 2023, and is projected to increase to $4.22 billion by 2029. Data centres contribute significantly to Ireland’s GDP.

An interesting example has been set by Finland, which seems to have achieved the best of both worlds. Data centres create what is called. In the Finnish town of Mäntsälä, outside Helsinki, waste heat from a local data centre operated by Yandex is piped into homes, reducing local heating costs by 11 per cent and significantly cutting carbon emissions, equivalent to taking 500,000 cars off the road.

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