Online retail giant Amazon has questioned its “ability to expand” its cloud computing deployment in Ireland in a recent lobbying effort with the government, due to difficulties in connecting new data centres to the power grid.
Amazon Web Services (AWS), the online retailer's cloud computing business, also told former Prime Minister Leo Varadkar that it wanted the Commission for Public Utilities Regulation (CRU) to “move forward as quickly as possible” to allow US companies to continue operating in Ireland.
Records of AWS' lobbying efforts were released to The Irish Times under the Freedom of Information Act.
Restrictions were imposed on new data centers three years ago due to concerns about the risk of power outages.
Centers that use large amounts of electricity also need to take environmental considerations into account.
Work is underway on a new Large Energy User Connection Policy, led by the CRU, with the aim of publishing a ‘decision document’ by the end of the summer.
The meeting between AWS's vice president of global public policy, Michael Panke, and Varadkar took place at the company's request at the Munich Security Conference in February.
Minutes from the Downing Street meeting read: “AWS expressed concerns about its ability to expand its presence in Ireland due to the difficulties in connecting new data centres to the grid. We hope the CRU can move forward quickly.” [as soon as possible] “In a way that allows US companies to continue operating in Ireland.” The memo also said Varadkar was quoted as saying AWS aims to be “carbon neutral in 2040 and 100% renewable by 2030,” with the latter goal thought to be reached by 2025.
In response to inquiries, Amazon said it has a “long history” in Ireland, employs around 6,500 people, has invested more than €17 billion and plans to open a dedicated Irish online store in 2025.
Amazon said: “We engage regularly with the Irish government to discuss our long-term and extensive operations in Ireland. The upcoming new Large Energy User Connection policy is important for our cloud computing business, AWS, and will set the stage for further investment in new high-tech cloud infrastructure in Ireland.”
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The company said it hopes the final policy will “provide a pathway for moderate growth by data center operators that is fully aligned with the government's sustainability and decarbonization goals.”
The government said: “We note the industry's views and recognise that there will be challenges over the next two to three years in terms of energy demand. However, the adoption of digital technologies is crucial not only to contribute to tackling climate change, but also for continued economic growth and prosperity. The government will work with the data centre sector to support the sustainable development of the digital economy.”
Separately, Amazon has sent a letter to Prime Minister Simon Harris congratulating him on his appointment, and offered to work with the government on road safety, which he has made a priority when he takes office.
Harris was told Amazon was spending €180 million on safety technology across its transport network to reduce accidents, and that it “welcomes the opportunity to further work with the government on this important issue to reduce road fatalities”.
“Officials from the Department for Transport and the Road Safety Authority have also met with Amazon in recent months about the use of in-vehicle technology to improve road safety in the US and UK,” the government statement said.
“It is important to note that while the technology has the potential to play an important role in improving road safety, Amazon has not yet deployed this in-car technology in any EU member state,” it added.
The statement highlighted the EU's “data protection situation” compared with the US and the UK.
