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Data centres are significant drivers of electricity demand. Almost one-third of electricity demand in Ireland could come from data centres by 2026.
ADVERTISEMENTEach ChatGPT question is estimated to use around 10 times more electricity than a traditional Google search. According to the nonprofit research firm Electric Power Research Institute, a ChatGPT request uses 2.9 watt-hours while traditional Google queries use about 0.3 watt-hours each.With an estimated 9 billion daily searches, this would mean an additional demand of nearly 10 TWh of electricity per year. The AI industry relies on data centres to train and operate its models, leading to increased energy demand and contributing to global greenhouse gas emissions. Microsoft announced its CO2 emissions had risen nearly 30% since 2020 due to data centre expansion. Google’s global greenhouse gas emissions in 2023 were almost 50% higher than in 2019, largely due to the energy demand tied to data centres. Energy use by artificial intelligence currently only represents a fraction of the technology sector’s power consumption and is estimated to be around 2 to 3% of total global emissions. However, this percentage is likely to go up as more companies, governments and organisations use AI to drive efficiency and productivity. Where are the data centres in the EU?There are currently more than 8,000 data centres globally, with about 16% of these located in Europe. The majority of these centres are concentrated in the financial centres of Frankfurt, London, Amsterdam, Paris, and Dublin.It is estimated that the electricity consumption in the data centre sector in the European Union will reach almost 150 TWh by 2026, according to the International Energy Agency (IEA).Electricity demand from data centres in Ireland was 5.3 TWh in 2022, representing 17% of the country’s total electricity consumed. That is equivalent to the amount of electricity consumed by all urban residential buildings.If AI application use continues to expand at a rapid rate, the sector could account for 32% of the country’s total electricity demand by 2026. Denmark also hosts 34 data centres, half of them located in Copenhagen. ADVERTISEMENTAs in Ireland, Denmark’s total electricity demand is forecast to grow mainly due to the data centre sector’s expansion, which is expected to consume 6 TWh by 2026, reaching just under 20% of the country’s electricity demand.Meanwhile, data centres in Nordic countries – such as Sweden, Norway, and Finland – benefit from lower electricity costs. This is attributed to lower cooling demand due to their colder weather.The largest actor amongst Nordic countries is Sweden, with 60 data centres, and half of them in Stockholm.ADVERTISEMENTGiven decarbonisation targets, Sweden and Norway may further increase their participation in the data centre market since almost all of their electricity is generated from low-carbon sources.Video editor • Mert Can Yilmaz
