Ten Myths About Data Centres: Busted for 2025

Data centres: the backbone of our digital world. They power everything from our social media feeds to critical infrastructure. Yet, misconceptions persist. Let's debunk ten common myths and bring the conversation up to date for 2025.

Myth 1 Data centres don’t contribute to the Irish economy

Busted: Data centres are a cornerstone of Ireland’s thriving digital economy. The technology sector in Ireland employs over 270,000 people, with the country hosting 16 of the top 20 global tech companies and the top three enterprise software providers. In 2023, ICT exports reached €228 billion, representing 42% of Ireland’s total exports. 

Ireland ranks third globally in digitally delivered services, holding a 10.3% share of world exports in this sector. The presence of data centres in Ireland supports this economic strength by enabling digital services, fostering innovation, and maintaining Ireland’s position as a leader in global technology and trade.

Myth 2 Data centres are just big empty warehouses

Busted: Modern data centres are sophisticated facilities packed with cutting-edge technology. They house complex networking equipment, powerful servers, and advanced cooling systems, all managed by highly skilled professionals. These are far from empty spaces; they are the engine rooms of the digital age.

Myth 3 Data Centres Consume Too Much Energy

Busted: While data centres require electricity, their efficiency has improved significantly. The International Energy Agency (IEA) notes that global data centre energy demand has remained relatively stable despite rapid data growth. The rise of AI presents new challenges, but the IEA report also highlights that the anticipated power demand increase from AI is still expected to be less than the growth in electricity demand from air conditioning. It’s important to contextualise data centre energy use against other industries and recognise ongoing efficiency improvements.

Myth 4 Data centres can be built anywhere

Busted: While historically, data centre location was somewhat flexible, the demands of modern computing, particularly advanced workloads associated with AI, are changing the landscape. These workloads often have less flexibility in terms of location compared to traditional cloud infrastructure. 

This presents an opportunity: these advanced data centres can be strategically located in areas with abundant renewable energy sources, potentially playing a crucial role in underwriting new renewable energy capacity on the grid. In Ireland, while the availability of land and grid capacity are key considerations, the focus is increasingly on sustainable development and aligning data centre locations with renewable energy initiatives.

Myth 5 Data Centres Do Not Help Reduce Environmental Impact

Busted: Data centres have enabled digital transformation and dematerialisation—reducing the need for physical infrastructure and travel. During COVID-19, they facilitated remote work, online collaboration, and virtual events, mitigating economic disruption. Beyond that, data centres support logistics optimisation, bioinformatics, and AI-driven innovations, such as vaccine development through massive dataset analysis, reducing environmental impacts across industries.

Digital technologies, including those enabled by data centres, have the potential to contribute to 20% of the greenhouse gas (GHG) emissions reductions needed to achieve global climate targets by supporting broader industry transitions according to the World Economic Forum.

Myth 6 Colder Climates Are Essential for Data Centres

Busted: While cooler climates reduce cooling costs, advancements in liquid cooling and other technologies make low-latitude locations viable for high-performance computing, including AI workloads. The suitability of different regions depends on a combination of energy availability, sustainability policies, and cooling innovations, rather than just temperature. 

The potential for future growth and scalability is a key factor in location decisions. Interestingly, lower latitude locations are being explored for their potential suitability for advanced computing, including AI, due to factors like climate and energy availability. Ireland's offshore wind potential can help to grow a decarbonised economy and deliver on its climate, economic and social goals.

Myth 7 Data centres have nothing to do with me

Busted: From the moment your day begins until it ends, data centres are intrinsically linked to your daily life. Consider booking a ticket, receiving a simple text, the convenience of online shopping, managing your finances, accessing healthcare, staying connected on social media, storing precious memories, handling utilities, or even a simple phone call – all are made possible by data centres. Our reliance on these facilities is as fundamental as our need for electricity in today's world.

Myth 8 All data centres are the same

Busted: The data centre landscape is diverse. There are significant differences between facilities designed for traditional cloud computing and those built to support advanced computing workloads, such as AI. AI-focused data centres often require high-density racks, advanced cooling solutions like liquid cooling, and are at the forefront of technological innovation to handle immense processing demands.

Myth 9 Data centres are becoming obsolete thanks to the cloud

Busted: Let's be clear: the cloud isn't some ethereal space in the sky. It's a network of physical servers housed in data centres right here on Earth. Cloud computing is simply a way of accessing and using those resources remotely, made possible by advancements in technology and how businesses operate. Cloud providers either build their own data centres or rent space in colocation facilities to deliver their services to governments, businesses, and individuals. Data centres are the fundamental infrastructure that enables the cloud.

Myth 10 Data centres are a temporary trend

Busted: Data centres are not a fleeting trend; they are a fundamental component of the modern digital economy. As our reliance on data and digital services continues to grow, the demand for robust and reliable data centre infrastructure will only increase. They are essential for supporting emerging technologies like AI, the Internet of Things (IoT), and 5G, ensuring they remain a critical part of our future.The focus will continue shifting towards greater efficiency, renewable integration, and geographic diversification to meet growing computational demands sustainably.

Data centres are evolving, and so must our understanding of them. By addressing these myths, we can have a more informed discussion about their role in a sustainable digital economy.

Thanks to Emma Fryer, CyrusOne and Joyce Wady, Digital Infrastructure Ireland for their contribution to this article.