Can AI Turbocharge Growth?
The UK Government claims artificial intelligence will deliver a decade of national renewal - Lessons from Europe.
Ireland, actively seeking investors to revitalise its economy, found a promising partner in a technology company. The Irish government, eager to stimulate economic growth, welcomed the company, offering financial incentives and unwavering support. This partnership initially proved fruitful, as the company flourished, generating employment opportunities and becoming a symbol of economic success. Civil servants provided invaluable guidance on employment laws, regulations, and local customs, while politicians celebrated the surge in job opportunities for their constituents. And of course, tax breaks helped. The company’s success attracted other tech companies to Ireland, all eager to share in the positive reception and benefits offered by the Irish government.
However, as these companies expanded and their operations grew, a concerning issue emerged that cast a shadow over this seemingly prosperous partnership. Ireland had become the largest data centre hub in Europe, but these data centres had an insatiable demand for electricity. Their energy consumption grew, powering not only the extensive networks of servers and lighting but also the crucial ventilating fans that cooled the buildings by expelling heat into the local environment.
In 2022, data centres consumed a significant 21% of Ireland’s metered electricity, surpassing the consumption by urban homes for the first time. The emergence of artificial intelligence will demand even more energy. By 2026, AI is expected to double its electricity needs, and further increases are expected. Today, there are 82 data centres in Ireland, with an additional 54 in the planning stages. As climate change intensifies, Ireland’s deepening commitment to big tech poses significant challenges to fulfilling its climate obligations.
Over the years, tech companies have amassed immense wealth and influence. They have constructed imposing hyperscale data centres. Yet, as the number of data centres multiplies, a sense of unease has developed across the nation. The initial camaraderie between the government and the tech giants has diminished, replaced by growing concerns over sustainability and autonomy.
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For individuals, increased productivity, connectivity and the lure of personal success dominated the attraction of the device in their hands. They believed the lack of cost stemmed from storing everything “in the cloud,” a floating, omnipresent, global, always-on, always-available system. However, the environmental impact and resource consumption challenge this narrative. The Irish are worried. They fear a future where ineffective political intervention, coupled with unsustainable energy demands, will prevent the country achieving its climate change commitments. The nation faces the possibility of environmental pressures threatening its landscapes and the well-being of its population.
Ireland’s experience serves as a cautionary tale for the UK Government. Pursuing economic growth at any cost can lead to unforeseen and adverse consequences. It is imperative to strike a balance between progress and preservation, ensuring that the advantages of technological advancement are not overshadowed by environmental degradation and social inequity.
The time for action is now. The UK Government must re-evaluate its relationship with big tech and prioritise sustainable development. This may involve implementing stricter regulations on data centre energy consumption, investing in renewable energy sources, and promoting energy efficiency.