Market Trends of Ireland Data Center Storage Industry
IT & Telecommunication Segment holds the major share.
- The market in Ireland has been driven by increasing cloud usage across major enterprises as a result of advancements in technology. 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 498.3 million) annually. In terms of investment, AWS announced plans to invest in a new campus in Charlemont Square to accommodate its cloud computing workforce, which was scheduled to open in September 2022.
- Consequently, proximity to cloud service providers (CSPs) has become a critical factor for businesses when selecting a data center in their local market. As a result, Dublin has emerged as a cloud computing hub, hosting major cloud providers such as Microsoft, Google, Amazon Web Services, and IBM.
- Online marketing is also driving the growth and demand of this segment as more audiovisual content is launched on social media platforms and shopping websites as part of digital marketing efforts. These factors further support the growth and demand for data computing facilities within the cloud segment.
- The technology, media, and telecoms (TMT) sector in Ireland contributes around 13% to the country's GDP. However, the market share of this sector is anticipated to decrease from 19.04% in 2022 to 13.06% in 2029. Building wireless networks in Ireland has long been a challenge for telecom operators. Nonetheless, significant infrastructure projects are underway, including the NBN, which aims to deliver a fiber-based service with at least 150 Mb/s nationally in the coming years. As operators work to enhance capacity with 5G deployment, their network strategy is evolving to include greater use of spectrum in higher frequency bands.
- Such developments, the growing urban population, and the ongoing demand for the cloud are, in turn, expected to boost the demand for the data center market from the IT and Telecom segment, leading to major demand for the cooling infrastructure during the forecast period.
Understand The Key Trends Shaping This Market
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Hybrid Storage is Expected to Hold a Significant Market Share
- The combination of on-premises and cloud storage solutions is called hybrid storage in data centers. This approach leverages the strengths of both environments, offering the flexibility to store and manage data on-site and in the cloud.
- To adapt to the changing workloads, businesses in Ireland need scalable solutions. Integrating both on-premises and cloud resources allows the hybrid data center to enable seamless expansion while offering flexibility in resource allocation.
- To stay competitive, businesses in Ireland are adopting digital transformation and focusing on innovative start-ups. The Irish Government has launched Ireland's National Digital Strategy to drive and facilitate the digital transition across its economy and society, setting ambitious targets for the digitization of Irish businesses, with the majority of SMEs having the necessary digital skills and a strong commitment to cloud computing, artificial intelligence, and big data by 2030.
- Moreover, Ireland underwent a remarkable transformation in digital government services between 2021 and 2022. E-government users increased from 67% of internet users to 92%. The public service comprises a diverse range of government entities. The portal currently links to over 8,800 datasets from approximately 100 publishers. Overall, the Government is launching a EUR 85 million (USD 89.5 million) fund to help businesses progress in their digital journey and develop new products, services, and processes. Such improvements in the market are expected to create more need for data centers, resulting in rising demand for segmental growth in the coming years.
- The key players in the market focus on improving the data center storage solutions to meet the market demand. In June 2023, to provide customers with greater speed, agility, flexibility, and choice in their hybrid cloud strategy, Hewlett Packard Enterprise (HPE) and Equinix have announced an expanded partnership to preconfigure HPE GreenLake for Private Cloud Enterprise and HPE GreenLake for Private Cloud Business Edition in Equinix data centers worldwide.
