Ireland has the potential to become a global leader in cutting emissions from data centres, a new report claims, but the Government must invest more in the development of climate technology and the companies that make it.
The report, co-authored by PwC Ireland and consultants SustainabilityWorks, argues that greater levels of support for climate tech companies in the Republic could help the Coalition achieve its ambitious carbon reduction targets while also helping create jobs and boost the economy.
One area in which the Republic is uniquely suited to making a difference is around the carbon output from data centres, the report’s authors say. They note that data centres – energy-intensive facilities that have become notorious in the Republic in recent years due to how much electricity they use and their impact on the State’s carbon targets – account for 21 per cent of the State’s energy consumption, while the global average is only around 1 per cent.
With digitalisation increasingly across the world economy, the authors say our “reliance” on data centres is also set to grow.
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“Rather than ignore the challenge, there is a unique opportunity for Ireland to lead the way in achieving net zero energy use in data centres and in shaping policy discussions on reducing the carbon footprint of big tech companies,” they add.
Two climate tech investment firms quoted in the report, Systemiq Capital and Wake-Up Capital, say the Republic has unique “potential to bring together key stakeholders to address challenges and find solutions transparently”.
Against this backdrop, the report suggests that the Republic should focus on areas where it has “a competitive advantage” instead of “trying to address decarbonisation challenges across” the economy.
“This could include developing new solutions to manage the energy and carbon challenges related to data centres, creating sustainable aviation fuels, and finding innovative ways to transition to decarbonise the food, agriculture and land use sectors.”
The Republic has a “strong venture capital” ecosystem that has been able to identify talent in collaboration with universities, a key element in the success of indigenous financial and medical technology companies, the report states.
PwC says this model could be used to direct resources toward climate tech amid strong global demand for technological solutions to mitigate emissions and adapt to the impacts of climate change.
But the report warns that not enough is being done to direct State and private investment towards climate technology, which the researchers say should be recognised as a sector of the economy in its own right.
“Currently, there is not enough focus on climate as an economic opportunity,” said David McGee, environmental, social and governance leader at PwC Ireland.
“Recognising and offering targeted support could amplify the already strong foundation that exists. Investing in and supporting this sector will not only deliver economic returns to the State but will also advance the achievement of our national Climate Action Plan.
Aideen O’Hora, co-founder of SustainabilityWorks, said: “Ireland stands at the cusp of a big opportunity in the climate tech sector.
“With the right focus and investments, Ireland can become a key player in this growing field. To do this Ireland must act decisively and embrace climate innovation now.”
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