London, 15 July 2008 - A new report from consulting firm BroadGroup reveals that Ireland has attracted very significant investment in the data centre sector, which reached 944 million in the past year. Ireland is a dynamic tax efficient market that has attracted not only well established and pan European data centre competitors but also US, global and local players with diverse business models.
The new report, Data Centres Ireland, details expansion that has occurred in the sector, which includes substantial investment that has occurred over the past twelve to eighteen months.
BroadGroup predicts almost 80% growth in space for Data Centre facilities in Ireland by 2012. The growth in the Data Centre sector is forecast to be sustained over the next few years. Buoyed by a strong economy in recent years and an unprecedented demand for space and Managed Services, Data Centres have moved perhaps more sharply than elsewhere in Europe, to increase their focus on the provision of Managed Services.
Although most activity is focused in Dublin, the report also identifies other cities across the country which are transforming into data centre hubs. However the scarcity in power supply has meant that acquiring turnkey facilities around the capital city is an increasingly attractive option for the expanding providers. Fibre availability although deployed across the country as part of a government project, is reported to be not as well connected as it could be, leading to latency issues.
Nevertheless, demand drivers are present in the market, added to which Ireland has one of the lowest corporate tax rates in Europe at 12.5%, plus a skilled labour force and high productivity record. The report also identifies a new 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.
The report does note that a key challenge now confronting further development is the availability of space: Ireland does not have sufficient Data Centre space to accommodate the current demand for Managed Services, commented Steve Wallage, managing director at BroadGroup Consulting. The challenge for the Data Centre 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.
The report provides the first detailed account of the current status of Ireland's data centre market, including Belfast in Northern Ireland.