EU takes a page from Ireland’s AI playbook

The European Union seeks to close the gap in the AI race by emulating Ireland, a pioneer in the technology that has embraced data centers despite public opposition. Ireland demonstrated its potential role in the tech revolution by hosting an international AI summit in Dublin, aiming to showcase its commitment to AI development.

While the EU is emphasizing the need for stringent governance to prevent AI from becoming uncontrollable, it recognizes the importance of investing in and leveraging AI's potential to maintain competitiveness against the United States and China. EU technology chief Henna Virkkunen stressed during the summit that AI must be made relevant for the bloc's competitiveness and industries.

Approximately 20% of EU companies utilized AI last year, with the adoption rate climbing to 55% among larger businesses. However, many still employ AI for basic tasks. Europe currently holds around 5% of global data center capacity, with the United States accounting for about 75% and China approximately 15%, according to Andrea Renda, director of research at the CEPS think tank.

The EU plans to expand its capacity and is investing billions in specialized AI processors and energy-efficient data centers for businesses and research institutions.

Yet, Renda cautioned that simply increasing data center capacity is insufficient. She called for "political leadership" to identify obstacles and opportunities in this transformation. The EU is pursuing multiple strategies, including funneling funds from existing programs and appointing a Siemens executive to encourage manufacturers to integrate AI technology under the "Apply AI" initiative.

However, Renda pointed out that this strategy lacks dedicated budget, warning that without significant intervention, the EU will struggle to catch up.

Ireland, already a hub for many US tech giants due to its low tax rates and advantageous location, aims to contribute to Europe's AI momentum. Irish Prime Minister Micheal Martin expressed Ireland's eagerness to lead the charge at the summit. Nevertheless, Ireland's heavy reliance on US tech companies contradicts the EU's sovereignty efforts, and the rapid growth of data centers is straining the country's infrastructure, particularly its power grid, leading to local resistance.

A "counter-summit" held a few days prior to the main event highlighted Ireland's infrastructure challenges. Researcher Patrick Bresnihan noted that data centers consumed 23% of Ireland's electricity last year, equivalent to the total consumption of all Irish households. Bresnihan called for a moratorium on data center development to allow policymakers to consider a more environmentally conscious industrial strategy.

Former tech worker Neil Bennett, who witnessed his job replaced by AI and is now a data operator, urged Irish leaders to acknowledge the human impact of AI on workers in Ireland.