Ireland Data Center Market SIZE & SHARE ANALYSIS - GROWTH TRENDS & FORECASTS UP TO 2030

Ireland Data Center Market Analysis

The Ireland Data Center Market size is estimated at 0.66 thousand MW in 2025, and is expected to reach 1.4 thousand MW by 2030, growing at a CAGR of 16.21%. Further, the market is expected to generate colocation revenue of USD 618.2 Million in 2025 and is projected to reach USD 1,903.5 Million by 2030, growing at a CAGR of 25.22% during the forecast period (2025-2030).

Ireland's data center industry is undergoing significant transformation driven by robust digital infrastructure development and enterprise technology adoption. The market demonstrates strong fundamentals with SMEs comprising 99.8% of active enterprises and contributing to 67.5% of total employment, highlighting the robust demand for data center services across business segments. The government's commitment to digital transformation is evident through its comprehensive Digital Ireland Framework, which aims to position the country as a prime destination for international businesses. The framework encompasses various initiatives, including a EUR 2.7 billion investment through the National Broadband Plan, demonstrating the country's dedication to strengthening its digital infrastructure backbone.

Sustainability has emerged as a crucial focus area in Ireland's data center landscape, with facilities currently accounting for approximately 14% of the country's electricity usage. The government has established ambitious environmental targets, including sourcing 70% of electricity from renewable sources by 2030, while simultaneously working to reduce the sector's overall greenhouse gas emissions by 51%. In response to these initiatives, data center operators and electricity companies are forming strategic partnerships, exemplified by the collaboration between SSE Renewables and Echelon to develop a 520 MW offshore wind farm dedicated to meeting data center power demands.

The market is witnessing a significant shift in regional development patterns, with 21 new data centers planned outside the Greater Dublin area. This geographic diversification is supported by strategic infrastructure investments, including new fiber connections linking the west of Ireland to the United States and Cork directly to mainland Europe. The Cork Internet eXchange (CIX) is positioned to become the EU data center with the lowest latency to North America, highlighting the emergence of new strategic locations beyond traditional hubs. This expansion is further supported by the government's EUR 85 million fund to assist businesses in their digital transformation journey.

Ireland's public sector is demonstrating remarkable progress in digital transformation, with e-government user adoption increasing to 92% of internet users, positioning the country 6th in digital public services rankings. The public service infrastructure has expanded significantly, with the government portal now connecting to over 8,800 datasets from approximately 100 publishers. The Department of Public Expenditure and Reform is actively promoting a cloud-first approach through its Cloud Computing strategy, while simultaneously implementing stringent environmental standards for new data center developments. This balanced approach ensures sustainable growth while maintaining Ireland's position as a leading digital infrastructure hub.

Ireland Data Center Market Trends

Increase in search engines and social media sites boost the market demand

• The total number of smartphone users in the country was 3.73 million in 2022, and it is expected to witness a CAGR of 1.78% during the forecast period to reach 4.19 million users by 2029.
• In 2024, Ireland's share of monthly active smartphone users is projected to reach 74.85% of the total population. This would be an increase of above 3% from 71.8% in 2018. Ireland's internet penetration rate stood at 99% of the total population at the start of 2022 with the emergence of 5G. A majority of internet users in Ireland utilize smartphones to use search engines, check their email, and visit social media sites at least weekly. Since the COVID-19 pandemic, more people have been shifting to contactless services. This is the case across almost all age groups, regions, and social classes. Only 47% of people over 55 stated that they used contactless payment frequently before the COVID-19 pandemic. However, 81% of them have used it more frequently since the pandemic.
• With the growth of the user base of smartphones, there has been an overall positive market demand for data centers. The penetration rate has been positive with regard to usage for e-commerce, media and entertainment, and the banking payment sector, due to which a large chunk of data is being gathered. Smartphones necessitate real-time processing due to generating large chunks of data. This mostly requires data centers for storage. Overall, there is a major requirement for extra racks, which is expected to increase with the increasing number of smartphone users. As smartphone users rose, the number of racks in data centers increased from around 32,000 in 2017 to 132,000 in 2022. This trend is expected to continue during the forecast period.

Surge in FTTx cables and strong broadband connectivity is boosting the data center market

• Although copper is adequate for a voice signal, it provides very limited bandwidth. Fiber provides standardized performance up to 10 Gbps and beyond. In Ireland, during the forecast period, the growth of copper connections is expected to be 16.37%, while FTTx is projected to record a growth of 36.86%. With regard to hyperscale data centers, many fiber-optic cable makers have changed their construction in a way that allows them to pack thousands of optical fibers into one cable. In Ireland, there is an increasing adoption of FTTx cables.
• Ireland has six main fiber broadband providers: Digiweb, Eir, Pure Telecom, Sky, Virgin Media, and Vodafone. All Irish providers can offer speeds of a maximum of up to 1,000 Mbps to certain areas with "Fibre-to-the-Home" connections from SIRO broadband, a joint venture from ESB and Vodafone that brings 100% fiber broadband to homes in Ireland, using the existing electricity network.
• Ireland’s broadband speeds are improving Y-o-Y. In terms of broadband speed, Ireland ranked 36th out of 220 countries and territories worldwide in 2022, a jump from 44th place in 2021 and 51st place the year before. The COVID-19 pandemic highlighted the need for widely available and reliable digital connectivity, leading to major investments. In January 2022, Eircom Limited (Eir) and InfraVia Capital Partners announced the formation of a new joint venture, Fibre Networks Ireland Limited, to build wholesale fiber-to-the-home (FTTH) networks across the Republic of Ireland. Overall, fiber cables and strong broadband connectivity across the country are expected to support data centers during the forecast period.

OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT

Segment Analysis: Data Center Size

Mega Segment in Ireland Data Center Market

The mega data center segment dominates the Ireland data center market, commanding approximately 64% market share in 2024. This significant market position is driven by a higher focus on hyperscale-based facilities compared to retail facilities. The segment's growth is particularly concentrated in Southern Dublin, which currently hosts major providers like CyrusOne Inc. with substantial IT load capacity. The segment is experiencing robust expansion with multiple upcoming projects, including Echelon Data Centres' planned construction of 390 MW-capacity facilities comprising four data centers named DUB 10, DUB 20, DUB 30, and DUB 40. Ireland's favorable tax regime continues to attract foreign companies to invest, particularly in the wake of Brexit, with many companies choosing Dublin as their EMEA headquarters. This trend, coupled with the increasing digital transformation across industries, is driving the construction of mega DC-size facilities in the region.

Small Segment in Ireland Data Center Market

The small data center segment is projected to demonstrate remarkable growth potential, with an expected growth rate of approximately 44% during the forecast period 2024-2029. Currently operating with a modest capacity, this segment is witnessing transformation through strategic developments and technological advancements. The segment primarily consists of Tier 3 and Tier 1 & 2 certified facilities located in the western constituency of Dublin. While major providers are primarily focused on constructing larger facilities, the small segment is finding its niche in specific market applications. The construction of small-size DC facilities in regions outside Dublin is expected to contribute significantly to the segment's growth trajectory, offering opportunities for regional expansion and market diversification.

Remaining Segments in Data Center Size Market

The massive, large, and medium segments play crucial roles in Ireland's data center ecosystem, each serving distinct market needs. The massive segment caters to enterprises requiring substantial computing power while maintaining operational efficiency, particularly in Dublin's data center hub. The large segment serves as a backbone for many established businesses, offering a balance between capacity and cost-effectiveness. The medium segment provides flexible solutions for growing businesses, with several facilities strategically located to serve diverse client needs. These segments collectively contribute to the market's robustness, offering varying levels of capacity and service options to meet different business requirements and technological demands.

Segment Analysis: Tier Type

Tier 3 Segment in Ireland Data Center Market

Tier 3 data centers dominate the Ireland data center market, commanding approximately 83% market share in 2024. These facilities are highly preferred due to their comprehensive redundancy capabilities and significant improvement in availability, designed to have no more than 1.6 hours of unplanned downtime per annum. Dublin hosts all the Tier 3 data centers in the country, with North and South Dublin comprising significant shares. Major providers, including Digital Realty Trust Inc., Equinix Inc., Keppel DC REIT Management Pte Ltd, and CyrusOne Inc., operate these facilities, with CyrusOne Inc. and Equinix Inc. accounting for major market shares of around 23% and 21%, respectively. The segment's prominence is further reinforced by the fact that SMEs, which comprise 99.8% of active enterprises in Ireland, generally prefer using at least a Tier 3-rated system for their operations.

Tier 4 Segment in Ireland Data Center Market

The Tier 4 segment in Ireland's data center market is experiencing substantial growth momentum, projected to expand at approximately 28% annually from 2024 to 2029. These facilities are gaining traction due to their superior uptime guarantee of 99.995% per year, translating to less than 0.5 hours of downtime annually. Providers such as BT Communications Limited and CyrusOne Inc. are leading the development of Tier 4 specifications in their facilities. The growth trajectory is particularly driven by the significant adoption of hyperscale colocation by major end users in the cloud and telecom industries. CyrusOne's facility expansion plans and the increasing demand for high-reliability data centers from enterprise customers are further accelerating the segment's growth.

Remaining Segments in Tier Type

The Tier 1&2 segment represents the basic level of data center infrastructure in Ireland's market. These facilities primarily cater to organizations with basic data storage needs and limited budgetary allocations. However, their market impact is minimal due to the lower functionality and reliability compared to higher-tier facilities. The relatively high downtime potential of up to 28.8 hours annually makes these facilities less attractive even to small and medium enterprises, who increasingly prefer higher-tier facilities for their critical operations. The segment's growth is further constrained as providers focus on constructing data centers with higher certifications to meet the evolving demands of the digital economy.

Segment Analysis: Absorption

Utilized Segment in Ireland Data Center Market

The utilized segment dominates the Ireland data center market, commanding approximately 76% market share in 2024, highlighting its crucial role in the country's digital infrastructure landscape. This segment's prominence is driven by the increasing adoption of colocation services by major enterprises, particularly in cloud computing and telecommunications sectors. The estimated utilization for data centers located in the North and South counties of Dublin maintains a high occupancy rate, supported by Ireland's strategic position as a digital hub. The segment's growth is further bolstered by significant infrastructure projects and collaborations between data center operators and electricity companies, such as the partnership between SSE Renewables and Echelon to build a 520 MW offshore wind farm. The take-up of industrial and commercial space, particularly in Dublin, has shown remarkable momentum, with substantial increases in construction activity. Moreover, the segment is experiencing robust growth and is projected to maintain strong expansion at approximately 20% annually through 2029, driven by increasing demand from hyperscale providers and wholesale colocation services.

Non-Utilized Segment in Ireland Data Center Market

The non-utilized segment in Ireland's data center market represents the available capacity that presents significant opportunities for future expansion and market development. This segment plays a vital role in maintaining operational flexibility and accommodating sudden surges in demand from various sectors. The strategic importance of maintaining reserve capacity has become increasingly apparent as Ireland positions itself as a prime destination for international businesses and digital infrastructure investments. Data center operators are carefully managing their non-utilized capacity to ensure sustainable growth while adhering to power usage guidelines set by local authorities. The segment's dynamics are influenced by factors such as land availability, power infrastructure development, and regulatory frameworks governing new data center constructions. Additionally, the non-utilized capacity serves as a buffer for future technological advancements and emerging digital services, allowing data center operators to respond quickly to evolving market demands. This segment also enables providers to maintain optimal performance levels while undertaking necessary maintenance and upgrades without disrupting existing services.

Ireland Data Center Market Geography Segment Analysis

Data Center Market in Dublin

Dublin stands as Ireland's premier data center location in Ireland hub, commanding approximately 97% of the country's total IT load capacity in 2024. The city's western suburbs have emerged as particularly advantageous data center locations in Ireland, leveraging fresh air cooling for servers. Dublin's prominence is reinforced by its status as the only English-speaking EU member post-Brexit, making it especially attractive to North American tech giants. The city hosts over 2,200 startups and ranks 8th in the European Digital City Index, surpassing major cities like Barcelona, Vienna, and Milan. The region's infrastructure development continues to progress, with significant fiber deployment initiatives underway. The government's focus on sustainable development, coupled with Dublin's strategic location, continues to attract major global technology companies seeking to establish their data center operations.

Data Center Market in Rest of Ireland

The Rest of Ireland region is experiencing remarkable growth in its data centers in Ireland market, projected to expand at approximately 57% annually from 2024 to 2029. Cork and Limerick are emerging as significant alternative locations to Dublin for data center development. Cork's potential is particularly noteworthy, with infrastructure capable of supporting substantial IT load capacity in the future. The region benefits from new fiber connections linking western Ireland to the United States and Cork directly to mainland Europe. Cork Internet eXchange (CIX) is positioned to become the EU data center with the lowest latency to North America. The combination of available real estate, lower rents, and accessible electrical power makes these regions increasingly attractive for future data center investments. The development of innovative solutions, such as floating data center facilities, demonstrates the region's commitment to expanding its data center capabilities while maintaining environmental responsibility.

Data Center Market in South Dublin

South Dublin has established itself as a crucial subregion within the Dublin data center landscape. The area hosts several of Ireland's largest data center facilities, benefiting from its strategic location and infrastructure advantages. South Dublin County's successful implementation of digital services, including online payments, grant applications, and library services, demonstrates the region's strong digital foundation. The area has attracted significant investment in data center infrastructure, with major operators choosing South Dublin for their facility expansions. The region's appeal is enhanced by its lower development costs compared to the city center, coupled with the availability of suitable office buildings and development land. The presence of multiple global technology companies and the continuous development of new facilities underscore South Dublin's growing importance in Ireland's data center ecosystem.

Data Center Market in North Dublin

North Dublin continues to evolve as a vital component of Ireland's data center landscape, offering unique advantages for data center operators. The region has successfully attracted major data center investments, particularly in hyperscale facilities. North Dublin's data center development is characterized by its focus on sustainability and renewable energy integration, aligning with Ireland's broader environmental goals. The area benefits from robust power infrastructure and excellent connectivity options, making it an attractive location for both new facilities and expansions. The region's strategic planning approach balances data center growth with environmental considerations, ensuring sustainable development of the sector. Local authorities have been proactive in facilitating data center development while maintaining strict environmental standards.

Data Center Market in Other Regions

Beyond the established hubs, various other regions across Ireland are beginning to position themselves as potential data center locations. These emerging areas are developing their infrastructure and connectivity capabilities to attract data center investments. Smaller cities and towns are increasingly recognizing the economic benefits of hosting data center facilities and are working to create favorable conditions for development. These regions are particularly focusing on renewable energy integration and sustainable development practices. The growing interest in regional development is supported by government initiatives aimed at promoting balanced economic growth across the country. These emerging locations offer advantages such as lower land costs, reduced competition for resources, and opportunities for sustainable energy partnerships, making them increasingly attractive for future data center developments.

Free With This Report

We provide a complimentary and exhaustive set of data points on the country and regional level metrics that present the fundamental structure of the industry. Presented in the form of 50+ free charts, the sections cover difficult to find data on various countries on smartphone users, data traffic per smartphone, mobile and broadband data speed, fiber connectivity network, and submarine cables.