Data Centres Ireland

Published: July 2017. 54 pages. 19 Tables and Charts

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Ireland has a distinctive data centre market, characterised by a mix of third party data centres targeting burgeoning enterprise demand and massive investment by webscales, more so than any other country in Europe.

Active government support for inward investment by hyperscales from the US such as Amazon and Microsoft has resulted in the construction of massive facilities around Dublin. Apple too may yet be a new player subject to planning permissions. 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.  

Ireland has also benefitted from investment by US enterprises from the gaming, pharmaceuticals and content sectors making the country their European headquarters.

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, including Digital Realty with build and provide capacity. It has become the main hub for webscales regionally.

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.

Although currently the seventh largest market by third party m2 space in Europe, 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 alongside London, Paris, Amsterdam and Frankfurt.

In addition, research for the report finds that should all current investment plans for additional third party space come to fruition growth would equate to approximately 74% by the end of 2020 with substantial investment.

In terms of power, EirGrid believes that potential data centre power capacity could increase to 1,000 MW after 2019 (this report forecasts a total of 882 MW). Renewable energy generation – primarily wind energy - is a key government priority and is targeting 40% by 2020 well beyond the EU mandatory benchmark of 16%.

For the future there remains a need to provide additional cable submarine capacity in order to provide additional transatlantic resilience to North America and also new cable systems to mainland Europe. New investment in wind power technology aims to boost Ireland’s energy dependence using low carbon energy sources.

The report contains forecasts for m2 and MW through to the end of 2020 for third party data centres and for webscales.

List of Tables and Charts

Methodology

Data Centre Ireland - Executive Summary

Part 1 The importance of Ireland as a European Data Centre Digital Hub

1.Introduction

1.1 Data Law 

1.2 Data protection in Ireland 

1.3 Data sovereignty

1.4 Taxation and business incentives for Data Centre investments

1.5 Data Centre development

1.6 Hyperscale development

1.7 Connectivity

1.8 Dark Fibre connectivity

1.9 Cloud and IP connectivity 

1.10 Cloud Service Providers

1.11 International fibre connectivity from Ireland

 

Part 2 - Ireland power availability and power costs

2.1 Introduction

2.2 Irish power availability

2.3 Irish Electricity Providers

2.4 Renewable power generation

2.5 Power costs

 

Part 3 - Ireland Key Data Centre Provider profiles

3.1 Introduction

3.1.1 BT Ireland

3.1.2 Cork Internet eXchange (CIX)

3.1.3 DataPlex

3.1.4 Digital Realty

3.1.5 Digiweb

3.1.6 Eir

3.1.7 Equinix

3.1.8 HEAnet

3.1.9 Interxion

3.1.10 Keppel

3.1.11 Servecentric

3.1.12 Vodafone Ireland

3.1.13 Other new Data Centre development plans

3.1.13.1 EPark Tech Campus

3.1.13.2 EdgeConneX

3.2 Third party analysis

 

Part 4 - Forecasts and Outlook for Ireland as a European Data Centre Hub

4.1 Introduction

4.2 Forecasts for Data Centre space and power – from 2017 to 2020

4.2.1 Third party data centre m2 forecast

4.2.2 Third party data centre MW forecast

4.3 Webscale data centre m2 forecast

4.4 Webscale data centre MW forecast

4.5 Combined Webscale data centre m2 forecast

4.6 Dublin compared to other European Data Centre Hubs

4.6.1 Dublin as a European Data Centre Hub

4.6.2 London as a European Data Centre Hub

4.6.3 Paris as a European Data Centre Hub

4.6.4 Frankfurt as a European Data Centre Hub

4.6.5 Luxembourg as a European Data Centre Hub

4.6.6 Amsterdam as a European Data Centre Hub

4.7 Opportunities for Data Centres in Ireland from the Brexit process 

4.7.1 The EU General Data Protection Regulation (GDPR)

4.8 Key trends for Data Centre development in Ireland

4.9 Ireland as a European Data Centre Hub

4.10 Future Challenges

Figure 1 – Webscale investment in Ireland – Source: BroadGroup

Figure 2 – Growth (m2) forecast 2017 to end 2020 – Source: BroadGroup

Figure 3 – Key components that influence Ireland’s business attractiveness for Data Centre, Hosting & Cloud Service Providers - Source: BroadGroup 

Figure 4 – Fibre network providers Ireland – Source: BroadGroup

Figure 5 – Dark Fibre providers in Ireland – Source: BroadGroup

Figure 6 – Peak traffic and IX Membership Europe – Source: BroadGroup

Figure 7 – IP Connectivity providers Ireland – Source: BroadGroup

Figure 8 – Cloud Service Providers Ireland – Source: BroadGroup

Figure 9 Key submarine cable systems landing in Ireland – Source: BroadGroup

Figure 10 – Forecast demand power growth from the Data Centre segment 2016-2025 – in MVA - Source: EirGrid

Figure 11 – Trend in industrial electricity pricing for selected EU countries in Euro per kW Hour from 2014 to 2016 - Source: Eurostat

Figure 12 – Industrial electricity costs compared with other EU countries in Euro per kWh (November 2016) - Source: Eurostat

Figure 13 – Third party data centre player share by m2 – Source: BroadGroup

Figure 14 – Forecast for third party data centre m2 growth 2017-2020 – Source: BroadGroup

Figure 15 – Forecast for third party data centre MW growth 2017-2020 – Source: BroadGroup

Figure 16 – Forecast for webscale data centre m2 growth 2017-2020 – Source: BroadGroup

Figure 17 – Forecast for webscale data centre MW growth 2017-2020 – Source: BroadGroup

Figure 18 – Forecast for 3rd party and webscale data centre m2 growth 2017-2020 – Source: BroadGroup

Figure 19– Estimated investment through to 2020 by 3rd party players – Source: BroadGroup