Ireland’s data centres now consume as much power as every household combined

EU takes a page from Ireland's AI playbook

Ireland’s aggressive courtship of data centres has turned the country into Europe’s unlikely AI proving ground. Now Brussels wants to copy that playbook, despite growing domestic backlash over strained power grids and scarce local jobs.

Dublin hosts an international AI summit Wednesday, showcasing its bid to anchor the continent’s technological ambitions. Senior figures slated to attend include Google DeepMind chair Demis Hassabis, Microsoft President Brad Smith, and EU tech chief Henna Virkkunen.

The stakes extend far beyond one member state. Europe trails badly in global AI infrastructure, holding roughly five percent of worldwide data-centre capacity. The United States commands around 75 percent, China about 15 percent, according to Andrea Renda, research director at the CEPS think tank.

Meanwhile, adoption figures paint a mixed picture. Roughly 20 percent of businesses across the 27-nation bloc deployed AI last year, climbing to 55 percent among the largest firms. Most implementations remain simplistic, research shows.

Brussels has pledged billions toward so-called AI gigafactories, facilities packed with advanced processors and energy-efficient data centres. Yet Renda warns that infrastructure alone won’t close the gap. “If you only build data-centre capacity, you have not done much,” he told AFP. He called for political leadership to identify roadblocks and enablers of transformation.

The EU’s “Apply AI” strategy, aimed at pushing manufacturers toward adoption, lacks dedicated funding, Renda noted. Without bold intervention, he said, Europe risks falling further behind.

Ireland embodies both promise and peril. Prime Minister Micheal Martin champions the country’s role as an AI development hub. US tech giants flocked there for favourable taxes and geographic positioning. But reliance on American firms undercuts EU sovereignty goals, and data centre expansion now consumes 23 percent of Ireland’s electricity, equal to all households combined.

“A world record,” said Patrick Bresnihan, a Maynooth University researcher. At a counter-summit days earlier, he noted the centres employ just 3,300 people. He urged a moratorium on development to allow space for a greener industrial strategy.

Former translator Neil Bennett lost his job to AI, then found work as a data operator, only to see that role automated too. He called on Irish officials “to recognise the human impact of AI on workers in Ireland.”