Market Trends of Ireland Data Center Construction Industry
The IT and Telecom Segment is Expected to Have Significant Market Share
- The Irish data center construction market is being driven by the increasing use of cloud services among major enterprises due to technological advancements. An industry survey suggests that a 10% increase in cloud adoption by the Irish public sector could yield economic benefits of EUR 473 million (USD 558 million) annually.
- As of June 2023, Irish businesses focused on long-term growth and resilience, notably channeling investments into technology. A Tata Consultancy Services (TCS) survey highlights that 74% of Ireland's major corporations view cloud technology as a key long-term investment.
- In terms of telecom growth, most mobile networks accessible to the general public rely heavily on 4G technology, underpinned by a 4G core. In December 2023, Three Ireland initiated trials for its cutting-edge 5G network, specifically tailored to empower corporate clients with advanced technologies and IT systems. This trial marks the debut of the 5G standalone network in Ireland. The technology is poised for substantial growth, fueling a surge in the country's data storage needs.
- In May 2024, Vodafone announced its intention to introduce 5G standalone (5G SA) services in Northern Ireland. This initiative hinges on the approval of its proposed GBP 15 billion (USD 19 billion) merger with Three Ireland in the United Kingdom. Vodafone highlighted that its 5G SA network aims to support various segments in rural Northern Ireland, such as healthcare, education, and agriculture.
- The growing demand for data in the market is expected to increase the need for data centers in the coming years. This surge in data storage demand is expected to boost the prospects of regional data center construction firms.
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Tier 3 is Expected to Hold the Major Share in the Country
- In 2023, there were around 31 data centers in Ireland with Tier 3 certification, with a cumulative IT load capacity of 391.3 MW. Reliability and affordability are the major factors driving the demand for Tier 3 data centers in the country. The Tier 3 segment is projected to register an annual growth rate of 9.1% to reach around 1,000 MW by 2030.
- In 2023, Dublin was the leading location for Tier 3 certified data centers. Digital Realty Trust Inc. (Interxion) had the highest IT load capacity of 61.6 MW across eight facilities. Equinix Inc. followed with 55.71 MW distributed over five facilities. Cyrus One Inc. operated a single facility with a 54 MW IT load. K2 STRATEGIC PTE. LTD (Kuok Group) managed 48.72 MW across three facilities, while BT Communications Limited (BT Group PLC) ran a single facility with a 20 MW load. Other companies in the market held smaller shares.
- During the study period, Dublin is set to see the construction of about six data center facilities, all meticulously designed to adhere to Tier 3 standards. These strategic facilities are expected to add over 600 MW of IT load capacity to the region.
- Several key players plan to invest in data centers during the study period. These include K2 STRATEGIC PTE. LTD (Kuok Group) with a planned investment of 8 MW, Cyrus One Inc. with 20 MW, EdgeConneX Inc. (EQT Infrastructure) with 7 MW, and Echelon Data Centres with a substantial investment of 300 MW. These developments in the Irish market are expected to amplify the demand for Tier 3 certified data centers. This heightened demand, particularly within the Tier 3 category, is expected to fuel the necessity for data center construction services in the coming years.
