Ireland is Projected to Benefit Greatly from Europe’s Data Centre Growth

According to new research from Data Centre (DCP) Pricing, Ireland is one of the European data centre markets poised for expansion, with capacity likely to expand significantly in the next years.

According to the report, Europe is undergoing a data centre boom, with the UK, Germany, the Netherlands, and France accounting for more than 70% of total data centre space among the 15 European countries studied.

However, Ireland, along with Portugal, Italy, Spain, and Switzerland, is expected to be one of the primary growth markets for new data centre developments.

In recent years, Ireland has become a more popular site for data centre investment. TikTok, like Google, Amazon Web Services, and Microsoft, chose the country as a data hub last year.

According to DCP, there are more than 6 million square metres of equipped data centre space available in the 15 European nations evaluated, accounting for more than 9GW of electricity.

The United Kingdom and Germany are the two largest markets in Europe, accounting for 44 per cent of data centre space. While capacity in the UK is predicted to increase by 25%, capacity in Germany is expected to increase by 44%.

Data centre clusters surrounding major cities such as London, Frankfurt, Amsterdam, and Paris account for more than 1.3 million square metres of area.

The predicted increase in capacity, according to DCP’s study of 109 data centre projects in the pipeline across 14 European regions, is about 1.5 million square metres.

While the main four nations account for more than half of Europe’s data centre capacity, secondary markets are anticipated to develop the most in the next years, according to DPC.

The rise of these secondary markets is being fueled by the construction of new large-scale data centre facilities, such as the Echelon Data Centres project in Arklow, Ireland, and developments in Portugal, Rome, Zurich, and Madrid. The 450MW Sines 4.0 project in Portugal, for example, has the potential to triple the country’s data centre capacity.

The various acquisitions in the data centre market show investor interest, with companies like Norway’s DigiPlex and Italy’s SuperNap being scooped up by private investors in 2021.

New private equity investors are launching hyperscale facilities in new regions for the first time, which is driving the increase in large-scale investment. Not only is demand for new data centre facilities expected to increase, but the availability of new data centre capacity in new markets suggests that cloud and content services will be distributed across more European markets in the future, in addition to the traditional FLAP [Frankfurt, London, Amsterdam, and Paris] cities. 80 per cent of Ireland’s data centre capacity is made up of “hyperscalers”. whereas other sectors of the economy were severely impacted by Covid-19, data centres were essentially unaffected.

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