The jury may still be out on the long-run impact of the artificial intelligence revolution but it is clear that Ireland cannot afford to wait until the verdict comes in before it responds. The central role played in our economy by the companies at the forefront of this wave of change requires action.
In the short term, the tech sector claims, this means one thing. More data centres to host the banks of computers on which these applications run. And that in turn means more electricity.
Ireland has a leading position in data centres and is one the biggest hubs in Europe. There are approximately 80 up and running, most of them in the greater Dublin region and another 40 or so have planning permission. The limiting factor is grid connections, and the industry would argue that this amounts to a moratorium on growth.
Opponents would counter that Ireland has too many data centres and they already consume one-fifth of all electricity used in the Republic, a figure set to rise to 30 per cent by 2032.
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The proposal by the Commission for Regulation of Utilities (CRU) that all new data centres looking for connections to the electricity supply network must have backup generators or storage – in the form of batteries – and use these to supply power back to the market is an attempt to cut this Gordian knot.
The measure, which is currently out for consultation, is intended to allow the expansion of the sector without adding to the existing pressure on electricity supplies. If the CRU goes ahead with the proposal, it should help allow Ireland to maintain its leading position in the market for data centres.
It would also allow some breathing space for the implementation of the longer-term objective of upgrading the electricity supply network and powering the sector through renewable energy. In the short term it can be seen as a retrograde step in this regard as there is no requirement for green energy sources in the CRU proposal.
On balance it is a reasonable and pragmatic solution to a problem of growing urgency.
