Sunday, October 22, 2017

Amazon set to expand €1bn data centre footprint in Ireland

New building has been acquired but no construction plans have been unveiled by AWS.

Amazon’s AWS cloud business is readying to build another data centre in Ireland as demand for cloud services soar.

According to the Irish Independent, Amazon has acquired a site next to its Tallaght campus in South Dublin last year which will be used to host public cloud servers.

The news service reports the company is already in the planning process to build the new data centre at a former Barretts’ warehousing and distribution base.

The plan is to demolish the buildings and build from ground up what will be the fourth data centre by Amazon in Tallaght alone.

Map of the Dublin Data Cluster. Source: Host in Ireland

Map of the Dublin Data Cluster. Source: Host in Ireland

Amazon currently runs a 23,300 sqm facility in Tallaght in what was before a Tesco distribution centre. In addition, the company acquired in 2014 a former Jacobs biscuits site also in Tallaght where it is building a 22,000 sqm hub.

A third data centre has been built at Shinki Microelectronics former headquarters.

In addition to the Tallaght area, Amazon has been granted permission to build a data centre in Blanchardstown, also in Dublin.

The company has also offices in Cork where it employs around 900 people.

In total, the company has invested more than €1bn in Ireland to build data centres and offices.

AWS is estimated to have generated about 8.6% of Amazon’s total revenues, amounting to €11.19bn.

As for Ireland, the country saw in 2016 over $2bn worth of data centre investments being announced in Ireland. According to the Irish Wind Energy Association, a further $2bn will be invested in the next five years.

Currently, mega data centre sites are being built or waiting approval. These include Microsoft, Apple, Facebook, JDC Group and EdgeConnex.

Ireland is also in the middle of a subsea cable construction boom. One of the most recent projects announced is a 6,300Km cable by Aqua Comms connecting Ireland to the US.

Speaking to Data Economy, Garry Connolly, president of Host in Ireland, said: “Running in parallel with the Hyperscale/Public (Microsoft, Google, AWS) recent announcements are the expansions of the Co Location, Managed Services, Retail and Wholesale providers including Digital, Equinix, Interxion, KeppelDC, EdgeConnex , Sungard and Dataplex.

“The trend now is “Hybrid” and on ramps and off ramps to the Public cloud at Nano and Pico second speeds
are becoming a reality, with Data Centre to Data Centre traffic becoming the largest part of internet traffic
over the coming years geographic locations will need to have both Hyperscale and Co-Location to be considered an optimum location for data to rest in.”