Microsoft and Amazon are not allowed to build their planned data centers in Ireland.
Ireland is a popular location for large technology companies. There, the EU rules for privacy namely rather loosely laid out. Large international companies are also well disposed here when it comes to tax law.
Meanwhile, Ireland has more 70 data centers and more are planned. But now the operator of the public transport system is moving AirGrid the emergency brake. The network is at the limit.
No power for Microsoft and Amazon
The Times reports that additional data centers would compromise network stability too much. Therefore, no new permits will be issued for data centers. Additionally, building projects that have already been approved by other Irish authorities will not receive a connection from EirGrid. This includes a $2 billion project by Amazon and 2 data centers Microsoft. The American group had received the building permit for these in 2021 – they should have started operations in 2023.
According to EirGrid, a data center would consume as much electricity as 80,000 households consume. would currently be 11 percent of all Ireland’s electricity needs come from data centers – if this continues, it will be 30% by 2029, according to EirGrid.
Before the year 2028 EirGrid will not approve network connections for data centers in and around Dublin. The Irish capital is the most popular location for data centers, and new Microsoft and Amazon facilities should have been built there. Dublin’s electricity network is therefore particularly vulnerable to outages. If overloaded, it might cause a chain reaction and shut down the power grid in large parts of Ireland.
Amazon wants to go to London instead
According to the Times report, Amazon and Microsoft don’t want to wait that long. Amazon wants its new data center in London to build. Microsoft is considering locations in London, Frankfurt and Madrid.
How long London is still possible as a location is debatable. In some parts of the city, a freeze has been imposed on the construction of new residential buildings until 2035 because data centers there are putting too much strain on the power grid.
