Irish Data Centers To Grow: Report

By theWHIR.com , July 18, 2008
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By David Hamilton, theWHIR.com

July 18, 2008 -- (WEB HOST INDUSTRY REVIEW) -- A new report from UK-based consulting firm BroadGroup (broad-group.com) has reported Ireland's data center sector has attracted EUR 944 million of investment in the past year with an expected 80 percent growth by 2012, but is hindered by a shortage of data center space.

According to the report released Friday, the Emerald Isle's low corporate tax rates have attracted substantial local and foreign investment over the past twelve to eighteen months. Growth has also been buoyed by a strong economy in recent years and an unprecedented demand for space and managed services especially in Europe.

BroadGroup predicts continued growth over the next few years, but Data Center space will be a challenge to growth.

"Ireland does not have sufficient data center space to accommodate the current demand for managed services," BroadGroup Consulting managing director Steve Wallage said in a statement. "The challenge for the data center providers now is to secure the space available before their competitors. Although we are projecting a significant amount of raised floor space will come on line from now to 2010, it will probably still be insufficient to meet demand."

Nevertheless, the report identifies a growth trend for "all Ireland" offerings between the Republic of Ireland and Northern Ireland, especially between Dublin and Belfast for customers who want services in both capitals.

While other cities are also transforming into data centre hubs according to the report, national capital Dublin is also Ireland's data center capital and its power supply stability has meant that turnkey facilities in and around Dublin are becoming increasingly attractive.

BroadGroup published a report in June predicting India's data center space will more-than-double over the next two years to reach more than $1.5 billion by 2010. Fuelled by offshoring, overseas multinational corporations and domestic demand, India's challenges lie in its unreliable power supplies, infrastructure and land availability.