What do ChatGPT, Google Maps, Netflix, and your morning scroll on Instagram all have in common?
They live in data centres, the physical engine rooms powering our digital lives and now, the AI revolution.
And right now, Ireland is at the heart of that infrastructure, but at what cost?
In this episode, we’re shining a light on one of the least visible but most powerful forces in the AI economy: data centres.
We’ll explore their significance, especially in the Irish context, how they support AI technologies, and the big questions we need to ask about climate, energy, jobs, and justice.
Why Data Centres Matter in the AI Economy
Data centres are the backbone of AI. Every prompt you give ChatGPT, every image it generates, and every model update all happen in a data centre. Without data centres, there is no AI-powered tech.
According to McKinsey, the rise of AI has driven an exponential demand for computing power and infrastructure. The more advanced the AI, the more storage, cooling, and power it needs. McKinsey says AI-ready capacity is projected to grow at an average rate of 33% annually between 2023 and 2030.
No data centres, no AI. It’s that simple.
Ireland: A Global Data Hub
Here in Ireland, we’ve become one of the world’s top destinations for data centre development. Did you know, Ireland is home to approximately 82 data centres in Ireland, with a further 14 under construction and planning approved for 40 more, meaning a 65% growth in coming years.
But this growth is having a knock-on effect on our energy capacity. Data centres currently consume one fifth of Ireland’s electricity and are projected to use one-third in the next few years.
Why Ireland? Well, it seems we have a number of strategic advantages.
- A cool, stable climate (great for cooling)
- A highly educated tech workforce
- Favourable tax and planning conditions
- Strong connectivity with the EU and US
Dublin has become a European digital capital. Arizton estimates the market will hit $4.22 billion by 2029, with steady 4% annual growth.
How Data Centres Power AI
When you use an AI tool like ChatGPT, the model is processed in the cloud on massive clusters of GPUs running in temperature-controlled warehouses.
These are data centres.
They support:
- Model training – which requires weeks of non-stop computation
- Model deployment – delivering responses instantly across the globe
- Data storage – housing everything from customer queries to massive training sets
AI needs power. Data centres deliver it.
Sustainability and the Climate Question
But that power comes at a cost.
In Ireland, data centres consumed 21% of the nation’s electricity in 2023, more than all urban households combined. They also use large volumes of water for cooling.
In fact, Dublin City Council rejected Google’s expansion over fears of energy strain and water impact.
This isn’t just a tech issue. It’s a sustainability issue. And so with rapid growth will come rising pressure on our grid, our water, and our communities. This will be a continuing challenge for our politicians, who will no doubt face backlash.
Here’s an excerpt from CBS Mornings on how the rise in AI is driving energy consumption. I think many countries can relate.
So the question becomes: Can we scale AI responsibly?
Jobs and Economic Value
The upside? Jobs and investment.
According to IDA Ireland, data centre companies in Ireland directly employ approximately 16,000 people, with contractor roles bringing the total to 27,000 when including construction and maintenance jobs. They’re going to be a strategic pillar of our digital economy.
Expect more:
- Regional data centres (outside Dublin)
- Stricter environmental regulations
- Investment in green infrastructure
But the real challenge? Making it sustainable and equitable.
Data centres are more than server farms, they’re the foundations of our AI future. Ireland is at the centre of this global shift. Now it’s up to us to make sure that shift is smart, sustainable, and fair.
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About the Podcast Host
Joanne Sweeney is a specialist in public-sector marketing and digital communications. She’s the author of Public Sector Marketing Pro and the creator of the Professional Diploma in AI for Public Sector Marketing. With years of experience in training, consulting, and advocating for digital transformation, Joanne provides insight and guidance for government agencies navigating the digital landscape. She is also the host of the award-winning Public Sector Marketing Show podcast.
