Dublin

Overview

Ireland's low corporation tax of 12.5%, encouragement of foreign direct investment, favourable political climate and geographical position between Europe and the US are some of the many reasons behind Ireland's successful data centre industry. However, as the industry has expanded rapidly, challenges have emerged that may impact its continued growth and success. In 2021, Eirgrid imposed a de facto moratorium on new grid connections for data centres. This moratorium was introduced due to concerns over the increasing strain data centres place on Ireland's electricity grid, as their energy demands grew faster than the grid's ability to support them sustainably. In response to this limitation, some data centre operators have resorted to on-site gas-powered generation to meet their energy needs independently from the national grid. However, this approach has also been camped down on by the Irish Government. Ultimately, the continued success of Ireland’s data centre market depends heavily on the rate at which renewable energy sources, such as wind and solar, come online. The faster these renewable sources are integrated into the grid, the better Ireland will be able to support growth within its data centre sector.