Data centres and the carbon budgets - Prof Hannah Daly Dec 2024

Research by Professor Hannah Daly of UCC, commissioned by Friends of the Earth, reveals a stark picture concerning the increased use of fossil fuels by data centres and how this rising consumption of gas by the industry is creating a blindspot in our climate action planning.

 

Significant findings from the research include:

• Electricity demand from data centres has grown at an annual rate of almost 23% since 2015, compared to less than half a percent % for other sectors.

• Between 2017 and 2023, all additional wind energy generation was absorbed by data centres. As a result, renewables are not delivering net reductions in fossil fuels use in power generation.

• Dozens of data centres either have or are seeking connections to the natural gas network. The shift to on-site gas generation also transfers security risks to the gas network, creating vulnerabilities in an already constrained system and creating the risk of fossil fuel lock-in.

• Current energy demand and GHG projections underestimate the impact of gas demand, as emissions from on-site generation are not fully accounted for, creating a significant blind spot in Ireland’s climate action planning.

• Data centres are driving additional GHG emissions from both electricity and natural gas consumption, threatening carbon budgets.

• Electricity demand from data centres far outstripped additional renewable energy procured through Power Purchase Agreements in recent years.

• Biomethane has been proposed to reduce data centre emissions but the scale of data centre demand would exceed sustainable production and risks diverting resources from other sectors.

Policy recommendations include:

• Enforce strict power grid connection policies, requiring alignment with carbon budgets

• Enhance transparency, by mandating real-time GHG emissions reporting for data centres and improve data collection on gas usage and renewable energy procurement.

• Develop a national electrification strategy to accelerate the electrification of transport, industry and heating, ensuring that renewables primarily displace fossil fuels.

• Create a plan for the use of surplus renewable energy production that best serves climate and societal goals, that is not limited to serving data centre needs.