Thursday, November 23, 2017

Dublin could become part of Europe’s Big 4 Tier 1 data centre markets

Third party data centre projects are expected to deliver capital expenditures in excess of €740m by 2020, making Ireland one of the business data centre destinations in Europe.

The accelerated growth of the Irish data centre market and more specifically the Dublin region could catapult the Irish capital to the same level as London, Paris, Frankfurt and Amsterdam.

This is according to BroadGroup’s latest report “Data Centres Ireland” which argues that the presence of webscales mainly in the Dublin area makes a strong argument for the city to be re-classified as a Tier 1 hub.

Philip Low, chairman at BroadGroup, said: “Given Ireland’s distinct data centre market, Dublin’s eco system of both third party and hyperscale facilities, and international connectivity, there is a strong argument for the city to be re-classified as a Tier 1 hub in Europe.”

The report finds that the low corporate tax in Ireland has been a key contributor to the country’s booming data centre industry which has seen both webscales and enterprises from the gaming, pharmaceuticals and content sectors build their IT infrastructure on Irish soil.

BroadGroup has also found that Ireland is sustaining further expansion by third party data centres.

Active government support for inward investment by hyperscales from such as Amazon and Microsoft has resulted in the construction of massive facilities around Dublin. Even now authorities are seeking to identify potential land banks for new large scale data centre facilities in Ireland, which indicates that the supply of more space will continue to enter the market.

The overriding attraction of Ireland is due to its status in the EU and low tax rates, with data centre investment across a range of business models and has become the main hub for webscales regionally. It has also fostered the development of renewable energy – primarily wind energy – and is targeting 40% by 2020 well beyond the EU mandatory benchmark of 16%.

Connectivity is supported by a range of international cable capacity, with the first direct submarine cable system from Ireland to France (bypassing the UK) due to be launched from Q3 2019.

The country also has a high installed base of fibre and dark fibre with further deployment planned.

Research for the report finds that should all current plans for third-party expansion come to fruition a total investment of €740m will be made by the end of 2020.

The report provides forecasts for both m2 and MW across both third party data centres, and webscales present in the country through to 2020.

BroadGroup will be hosting the first Datacloud Ireland conference at the Dublin Convention Centre on September 21st which includes a special workshop covering GDPR, enterprise meetings, and data centre tours.