Why Ireland is the Go-To Destination for Global Data Centres

Ireland is home to 82 data centres, with many more in the pipeline. But what exactly do these data centres do?

Believe it or not, every time you stream a show or book a flight, a data centre is working behind the scenes to make it happen. These facilities, filled with countless server racks, play a crucial role in Ireland’s economy and are a significant focal point in discussions about the need to reduce energy emissions.

Rather than storing data locally, our information is now housed in a few remote locations worldwide. The term ‘cloud’ essentially refers to a data centre, which serves as the physical manifestation of the cloud.

How long have we had data centres in Ireland?

In the late 1990s, Ireland welcomed its first data centres, operating discreetly behind the scenes. Initially serving bespoke industries, these facilities were primarily used for large-scale file storage and processing activities. At the time, the internet was not as robust or widespread as it is today.

However, the landscape changed dramatically from 2010 onwards, driven by the rapid advancement of smartphone technology, digitisation, and the surge in file sharing. This period marked a significant boom in the data centre industry. Presently, there are over 8,000 data centres worldwide, with approximately 33% located in the United States, 16% in Europe, and close to 10% in China. In Ireland, there are currently 82 operational data centres, and an additional 14 are under construction. Furthermore, planning has been approved for the development of 40 more data centres, indicating a projected 65% growth in the coming years.

Why Ireland?

Ireland’s appeal to data centre investors lies in a multitude of factors. The country boasts a stable government and democracy, providing a reliable regulatory environment for businesses. Its geologically stable location offers protection from natural disasters such as earthquakes, forest fires, and tsunamis.

Additionally, Ireland’s well-educated workforce, equipped with the necessary tech skills, makes it an ideal location for operating and maintaining data centres. Furthermore, its moderate climate, neither too hot nor too cold, provides an optimal environment for data centre operations. Lastly, Ireland’s favourable tax climate further enhances its attractiveness as a destination for data centre investments.