Dublin is keeping nuclear power on the table as a potential long-term answer to the surging electricity demand from data centres, even as the government insists its immediate focus remains on renewables. The shift in tone marks a notable departure from decades of opposition and a legal ban on domestic nuclear generation.
“There is a need to consider all options (with decarbonising potential) in the long-term,” a spokesperson for the Irish Department of Climate, Energy and the Environment told Euronews. The admission comes as political debate intensifies in the capital, often dubbed the Silicon Valley of Europe.
According to Ireland’s Central Statistics Office, data centres already consume roughly 21% to 22% of the country’s total electricity. That figure is projected to climb toward 31% by the early 2030s, driven by the rapid expansion of artificial intelligence models. Across the EU, data centres used an estimated 70 terawatt-hours in 2024, a number expected to reach 115 terawatt-hours by 2030 — enough to power roughly 32.9 million European homes for a year.
A historic reversal?
Ireland has never produced nuclear power and formally banned it in 1999, citing the international record of nuclear accidents. But in May, Taoiseach Micheál Martin hinted at a new “openness” to nuclear energy, shortly before urging the public to stop the “demonisation of data centres”. The comments have reignited debate about the country’s energy future.
Despite the rhetorical shift, Dublin acknowledges that conventional nuclear plants would take years to build and would not solve the immediate demand crunch. “Nuclear power could not practically be part of our electricity system until at least the 2040s,” the government official said. Moreover, investment would require building an entirely new regulatory framework covering construction, operation, decommissioning and radioactive waste.
A technical study is now examining 30 technologies with decarbonising potential, including nuclear. The assessment will compare them on cost, readiness, deployment times and public acceptance. The outcome could help Ireland address its electricity prices, currently the highest in the EU, followed by Cyprus.
Legal hurdles and political momentum
The biggest immediate obstacle is legal. In May, Fianna Fáil legislator James O’Connor introduced a bill to legalise nuclear energy, opening a new chapter in the debate. On 2 June, Minister for Enterprise Peter Burke presented an economic study showing the data centre sector generates €2.2 billion in annual economic activity and supports 19,500 jobs. The government coalition hailed the report as evidence of the sector’s critical role.
“The report highlights that the continued development of data centre capacity must be aligned with Ireland’s economic, energy and climate objectives,” Burke said. “Through our new Large Energy User Plan, all new data centres must provide their own energy generation onsite or nearby, 80% of which must be from renewable sources.”
Tom Parlon, chair of the Irish Data Centre Supplier Alliance, welcomed the findings, saying they provide “clear evidence” of the sector’s contribution. “We routinely hear claims that the data centre sector creates no jobs and provides little benefit to the Irish economy, yet this report shows these claims couldn’t be further from the truth,” he said.
Public concern and environmental costs
Not everyone is convinced. Critics point out that data centres consume as much electricity as entire cities and require millions of litres of water daily for cooling, often drawn from local communities already stressed by drought. A new EU law that would force data centres to disclose their true energy costs and reduce emissions is being challenged by Big Tech lobbyists. If it survives, the rating scheme is expected to apply from 15 August 2027, with the first sustainability labels generated.
Green groups are urging Energy Commissioner Dan Jørgensen to halt the rapid expansion of data centres before a final decision between EU co-legislators due by the end of the year. Oisín Coghlan, policy adviser to the Irish Environmental Network, dismissed Martin’s nuclear remarks as “vice signalling”.
“From his St Patrick’s day trips to the US he knows the Trump administration is very keen on AI,” Coghlan told Euronews. “Taoiseach Micheál Martin is making it clear that his Government will do whatever it takes to power US tech data centres, not just with the ‘windmills’ that Trump hates, but with macho nuclear too. Even if it takes too long, costs too much and isn’t needed.”
Scott Lane, founder and CEO of Speeki, an environmental assurance firm, argued that data centres are a “necessity” for future economies despite their “massive impact”. “Rather than fighting a foregone conclusion, the onus must now be on policymakers and ESG leaders to mitigate, and wherever possible turn positive, the environmental impact of these centres,” he said.
As Ireland navigates this delicate balance, the debate mirrors broader European tensions between economic growth and sustainability. The country’s decision could set a precedent for other nations grappling with the energy demands of the digital age. For now, Dublin is keeping its options open, even as it insists renewables remain the priority.
