Amazon, Google and Microsoft have warned that Ireland could deter foreign investment unless the Irish government comes up with a solution to its suffering energy system. The three tech giants, which together employ more than 10,000 staff in the country, have specifically criticised a plan by Ireland's energy regulator that recommends data centres contribute additional capacity to the energy grid.

Ireland is the European base for many major tech companies. It <a href=”https://www.europeancorrespondent.com/article?s=A-new-Gilded-Age&utm_source=The+European+Correspondent&utm_campaign=8b0f7f0e92-EMAIL_CAMPAIGN_2023_04_04_10_18_COPY_01&utm_medium=email&utm_term=0_-d2e5faad91-%5BLIST_EMAIL_ID%5D” style=”text-decoration: underline !important;”>has long been attractive due to its well-educated, English-speaking workforce and low corporate tax rate. Data centres are integral to this vision of Ireland as a tech hub. There are more than 80, with 14 under construction, and 40 more have received planning approval.

These data centres consume vast amounts of electricity. By 2026, data centres are projected to account for almost a third of the national energy demand. The strain they place on Dublin's power grid led to a moratorium in 2023 on further developments around the capital, where most are located, until 2028.

The tech giants are now raising concerns over Ireland’s capacity to support future data centre expansion, and warn restrictions may lead to long-term economic damage. The warning is the latest sign of Ireland's struggle to conciliate its economic attractiveness to tech giants with other domestic interests.

Discontent extends beyond energy. As Ireland struggles to meet its climate targets, data centres have faced increasing criticism for their carbon footprint. Yet there seems to be no all-encompassing solution For instance, in December 2022, Microsoft received approval to build 21 diesel generators and a large-scale gas power plant to help alleviate pressure on the power grid.