Ireland Hyperscale Data Center Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

Ireland Hyperscale Data Center Market Analysis by Mordor Intelligence

The Ireland Hyperscale Data Center Market size is estimated at USD 3.88 billion in 2025, and is expected to reach USD 13.46 billion by 2030, at a CAGR of 28.25% during the forecast period (2025-2030).

Driving Forces Behind Ireland's Hyperscale Data Center Market Growth

The Ireland Hyperscale Data Center Market stands at USD 3.06 Billion in 2024 and is projected to grow at a CAGR of 28.25% during the forecast period 2025-2030, reaching approximately USD 13.46 Billion by 2030. This exceptional growth trajectory positions Ireland as the third-largest hyperscale data center hub globally, housing nearly 5% of the world's hyperscale server farms, behind only Northern Virginia and Beijing.The market's expansion is primarily driven by Ireland's preferential corporate tax regime, abundant wind energy potential, strategic trans-Atlantic cable landings, and the concentration of fintech and medtech clusters demanding robust cloud infrastructure.

AI workloads are changing the market significantly, increasing power density requirements to 40-60 kW per rack. This rise calls for advanced cooling systems and major infrastructure improvements. In Ireland, hyperscale data centers are adapting to these demands by implementing efficient cooling technologies and prioritizing sustainable energy solutions to support AI-driven operations. The hyperscale data center market in Ireland is expected to grow further during the forecast period, driven by increasing AI adoption and the need for scalable, energy-efficient infrastructure.

Abundant Wind-Energy Potential Enabling Carbon-Neutral Expansion

Data center operators focused on reducing carbon emissions are increasingly relying on Ireland's strong wind resources. Ireland plans to generate 80% of its electricity from renewable energy by 2030, with offshore wind projects expected to add 5 GW of capacity by 2028. This renewable energy goal is influencing where operators choose to build, as seen with AWS setting up facilities at Bord na Móna's Energy Park and securing 105 MW from local wind farms. Data centers are now going beyond traditional power purchase agreements and directly investing in energy generation. For example, Keppel DC REIT recently signed two solar power purchase agreements in Ireland, showing the industry's effort to use a mix of renewable energy sources. As data centers face more pressure to reduce their environmental impact, many are using Ireland's natural resources to support their operations responsibly.

Strategic Trans-Atlantic Cable Landings Delivering Sub-30 ms Latency

Hyperscale operators benefit significantly from Ireland's role as a key landing point for trans-Atlantic fiber optic cables. In March 2025, Microsoft plans to add three new subsea cables connecting Wales to Dublin and Wexford, emphasizing the importance of this connectivity. These cables provide latency of under 30 milliseconds to the eastern U.S., enabling fast data processing across continents. This infrastructure is especially valuable for financial services, where even small time advantages can make a big difference. As the westernmost EU member, Ireland acts as a gateway for data traffic between North America and Europe. This advantage continues to influence hyperscale operators' decisions, despite challenges with the power grid. With AI workloads increasing and creating more data traffic within and between data centers, this connectivity is becoming even more important.

Fast-Track Strategic Infrastructure Planning in Dublin Metro

Dublin's strategic infrastructure planning has fostered a conducive environment for data center growth, streamlining approval processes for key projects. This proactive stance has led to a surge in hyperscale facilities, highlighted by Google's recent nod for a EUR 150 million data center in west Dublin, covering 30,361 square meters. Such a planning framework instills confidence in operators, ensuring swifter development timelines and minimizing costly delays. The Dublin City Council is keen on harmonizing economic growth with environmental stewardship, setting forth guidelines emphasizing energy efficiency and sustainability for data centers. Yet, this expedited approach faces challenges from grid capacity constraints, compelling operators to bolster on-site generation. The evolving planning framework now favors projects showcasing superior energy efficiency and renewable integration, granting a competitive edge to operators championing advanced sustainability measures.

Enterprise Cloud Uptake from Fin-tech & Med-tech Clusters

In Ireland, the burgeoning fintech and medtech sectors are fueling a robust demand for hyperscale cloud services, emphasizing the need for high-performance computing and stringent data security. Digital initiatives in Ireland now account for 13% of the nation's GDP, underscoring the pivotal role of cloud services in this economic expansion. By 2024, Ireland's public cloud services market is set to hit the USD 3.0 billion mark, bolstered by hefty investments in cloud migration from the financial services and manufacturing sectors. This surge in enterprise demand is a boon for hyperscale operators, as it translates to high-margin workloads with consistent growth patterns. As AI and machine learning gain traction in these industries, the appetite for specialized cloud services intensifies. Financial institutions, for instance, are harnessing cloud-based analytics to bolster risk management and ensure compliance. Meanwhile, healthcare entities are transitioning to cloud platforms, not just for research collaboration but also for data-heavy applications. This trend underscores a sustained demand for hyperscale capacity, even amidst broader market growth constraints.

National Grid-Connection Moratorium (EirGrid) Capping New Loads

EirGrid's grid connection moratorium, lasting until 2028, stands as the primary hurdle for Ireland's hyperscale data center market, effectively freezing new projects in the Dublin region. This move underscores the profound influence data centers wield over Ireland's electricity grid. The sector's electricity consumption has surged to 21% of the nation's metered total, a notable jump from 5% in 2015. In response, the Commission for Regulation of Utilities (CRU) has introduced a connection policy mandating data centers to establish onsite or nearby generation and storage capabilities that align with their peak import needs. This policy evolution is spurring a wave of innovation in energy solutions. Operators are delving into private wire connections and power purchase agreements as strategies to navigate grid restrictions. A testament to this adaptive strategy is Red Admiral Data Centres' initiative to construct Ireland's inaugural energy-independent data center in County Westmeath. As a result of the moratorium, there's a pronounced shift in the geographic landscape of Ireland's data center industry. Operators are increasingly scouting locations beyond Dublin, drawn by enhanced access to renewable energy and diminished grid constraints.

Community Push-back over Peak Water-Usage During Summer Droughts

As summer droughts strain local water resources, opposition to data center developments is intensifying. This growing resistance is complicating the approval process for new facilities and expansions, with several high-profile projects facing delays or outright rejections. The Dublin area, in particular, is under pressure as its water infrastructure operates near capacity during peak demand periods. In response, operators are deploying advanced water conservation measures, such as closed-loop cooling systems and rainwater harvesting, to reduce their water footprint. Additionally, some facilities are adopting air-cooled systems, which eliminate water usage entirely but require higher energy consumption for cooling. The trend toward liquid immersion cooling for high-density AI workloads introduces both challenges and opportunities. These systems are often more water-efficient than traditional methods but demand specialized treatment and recycling processes, adding complexity to operations. Furthermore, operators are exploring hybrid cooling solutions that combine water and air-based technologies to optimize both resource efficiency and energy consumption. To address these challenges, data center operators are also investing in research and development to create next-generation cooling technologies that are both energy-efficient and sustainable. Partnerships with environmental organizations and local authorities are becoming more common, as operators seek to align their strategies with regional water conservation goals. Additionally, some companies are piloting innovative solutions, such as using treated wastewater for cooling purposes, to further reduce their reliance on freshwater resources. This evolving landscape is driving not only technological advancements but also a shift in how operators engage with communities. By integrating sustainable practices, fostering transparent communication, and actively participating in local water management initiatives, operators aim to balance operational needs with community expectations, ensuring the long-term viability and acceptance of their projects.