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Here's why data centres in Ireland consume more than homes

The key factor is the boom in artificial intelligence, for which the world is postponing the goodbye to coal

by Biagio Simonetta

3' min read

3' min read

It was only a matter of time. And now that time has come. 2023 was the year in which, for the first time in history, data centre electricity consumption surpassed that of all homes in the country combined. It happened in Ireland, and the figures were made official in recent hours by the Central Statistics Office in Dublin.

According to the agency, data centres accounted for 21% of all measured electricity consumption in 2023, up from 5% in 2015 and 18% in 2022. And for the first time, their electricity consumption exceeded that of the country's total households, at 18% in 2023, down from 19% the year before.

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Ireland is one of the European countries where some very important data centres are located. These include the Microsoft Dublin Data Centre, Facebook Clonee Ireland, Google's Grange Castle II and the Amazon AWS DUB2. And if 2023 was the year of overtaking, the forecast is for consolidation: according to data from the National Energy and Climate Plan, the increase in demand for data processing - driven by the boom in generative artificial intelligence - could lead to Ireland's data centres consuming around 31 per cent of the country's electricity within the next three years.

Energy Intelligence

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The debate on the Irish overtaking cannot but start with generative artificial intelligence. Because it is precisely the boom of this new technology that has redesigned the world's energy plans, as ChatGPT and its sisters require huge amounts of computing power that violently impact consumption.

One of the most recent estimates states that by 2027 the entire AI industry could consume between 85 and 134 Terawatt hours per year. Although the various GenAI models have already undergone major slimming down in terms of consumption, the estimates do not dispel doubts about the long-term sustainability of this technology. Especially in view of one fact: current chips are definitely energy-intensive.

Nvidia's H100 microprocessor - which is the most purchased and sought after (it drives ChatGPT and other GenAI systems) - consumes about 700 watts. And a small data centre has at least 400 of these chips in it (while a large one has as many as 8,000). There is no doubt, then, that the real sustainability of generative artificial intelligence comes through the development of less energy-intensive chips.

Altman's alarm

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Beyond the numbers, it must be said that the digital world is fully aware of what is happening. The words of Sam Altman (ceo of OpenAI, producer of ChatGPT) at the last summit in Davos, Switzerland, when he said that the Achilles' heel of artificial intelligence is its energy consumption, were no coincidence. Altman's hope is a breakthrough in nuclear fusion to produce infinite clean energy. In the meantime, however, it is mainly dirty energy that is powering the data centres and in particular that generated by coal.

Google, which has its European headquarters in Ireland, made no secret a few weeks ago that its data centres risk hampering its green ambitions, after they caused a 48% increase in its overall emissions in 2023, compared to 2019.

Hunger for Coal

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The feeling is that as things stand, there is no plan B: either stop the GenAI boom or resort to decommissioning energy sources as well (assuming that this is enough). Since the beginning of 2024, more or less all electricity producers in the US have announced the postponement of plans to shut down coal-fired power plants. In Wisconsin, Alliant Energy may delay the conversion of a power plant by three years, while FirstEnergy is postponing its coal phase-out target beyond 2030.

According to a study published by Standard & Poor's, the divestment of coal-fired power generation will be 40 per cent lower than planned by 2023. Under these conditions, it seems clear that the climate targets are set to be derailed.

Too fast

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It must also be said that the demand for new data centres and new energy seems to be running twice as fast as production capacities. And this is a fact regardless of whether or not coal is used.

Virtually all the leaders of the technology world (from the ceo of Amazon to Elon Musk) agree that at some point, the reality of the power grid will get in the way of AI. And it's not a matter of new or old sources. "The demand for data centres has always been there, but it has never been this high," said Pankaj Sharma, executive vice president of Schneider Electric's data centre division, a few weeks ago. And even then it seems only a matter of time.

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