Report says data centre economic benefits to Ireland are exaggerated

The newly released academic report “How We All Pay for Big Tech” claims the economic benefits of data centres in Ireland have been overstated.

Authors, including academics Patrick Bresnihan of NUI Maynooth and Patrick Brodie of University College Dublin, argue that the methodology used in previous assessments relied on activity that predates the construction of the centres and therefore misrepresents their impact.

The report notes that Ireland’s 129 data centres sustain only 3,300 permanent jobs and consume 23 % of the nation’s power output, using 254.7 bn litres of water over a ten‑year period – an amount comparable to the water needs of 340,600 homes.

It further contends that the total value of high‑tech construction, including data centres, represents just 1 % of the value of exports generated by foreign tech multinationals operating in the country, suggesting a negligible overall economic impact.

The authors criticize a draft KPMG report, which the Department of Enterprise allegedly sought to amend to present a “strong narrative” for the sector, claiming €100 bn in added value and 875,000 jobs. The academic report describes that methodology as “spurious” and argues that the supposed economic activity cannot be verified given the nature of cloud computing.

According to the study, capital invested in data centres could have supported the construction of 50,000 additional homes in the five years to 2024.

Source: Irish Examiner. Photo: Erick Ortega / Pexels.