Ireland Data Center Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)

The Ireland Data Center Market size is expected to grow from USD 2.76 billion in 2023 to USD 4.06 billion by 2028, at a CAGR of 8% during the forecast period (2023-2028).

With the boosted ODM server revenue in the market, owing to increasing hyper-scale investments, the hyperscale services have dominated Ireland; thus, colocation has started gaining traction in the last few years. Moreover, implementing the General Data Protection Regulation (GDPR), which implements the EU General Data Protection Regulation (GDPR), has driven data traffic in Ireland, fueling market growth. The increasing demand for hyperscale facilities encourages investment in Ireland's submarine cable deployment projects.

Cloud computing adoption by SMEs in the country has also experienced considerable growth with an increase in data volumes. The increased demand from healthcare, logistics, e-commerce, and manufacturing sectors has attracted several cloud and colocation service providers to expand their presence in the country.

Enterprises in the country are moving away from traditional networking technologies and adopting software-defined networking (SDN) and network function virtualization (NFV) tools to assist with migration to cloud environments. Enterprises in the country are also expected to adopt NFV and SDN technologies to improve network automation, integration, orchestration, and management.

Many companies are starting to use colocation services in the country, and it is possible to find many potential options around Ireland. Most centers are in Dublin, while others are in Cork and Galway. ERS Computer Solutions has provided IT support and services to a broad range of organizations (large and small) throughout Ireland and has evolved into one of the most experienced providers of business and IT solutions to the general business community. A focus on continual research into new products and solutions enables the company to adapt to the ever-changing technology market and stay ahead of developments.

Cloud computing is a great target for various applications, as it caters to the storage and computation needs of cloud users at a relatively low cost. Although cloud computing has grown rapidly over the years, the area still needs appropriate security measures to protect cloud users' data and applications. Ireland's lack of data security in cloud and server-based services is hampering the market's growth. Cloud-based services bring many unique security issues and challenges. In the cloud, data is stored with a third-party provider and accessed over the internet. This means visibility and control over that data are limited.

With the recent outbreak of COVID-19, the country has been significantly affected, which has disrupted data center service providers in the region. Moreover, with the travel ban enforced in the country, many organizations have adapted to work-from-home scenarios, which has increased the data traffic significantly and has put tremendous pressure on data centers to cope with the existing capacities to prevent downtime. After the pandemic, the market is growing rapidly with the increased adoption of cloud solutions in various organizations, smartphones, and internet penetration across the country.

Ireland Data Center Market Trends

Tier 3 is the largest Tier Type

• Tier 3 data centers are the most preferred in Ireland and registered at an IT load capacity of 164.61 MW in 2022. The capacity is expected to grow from 447.25 MW in 2023 to 1,080.85 MW in 2029, registering a CAGR of 15.84%. A Tier 3 data center has redundant and dual-powered servers, storage, network links, and other IT components. SMEs generally prefer using at least a Tier 3-rated system. SMEs are a vital component of the Irish economy, comprising 99.8% of active enterprises and 67.5% of all persons employed. End users such as BFSI and media and entertainment focus on hyperscale facility colocation. As of 2022, there were around 25 Tier 3 data centers in the country, and around 11 upcoming data centers are under construction with Tier 3 specifications.
• Tier 4 data centers are the second most preferred data centers, mainly by large enterprises, as they provide 99.99% uptime. Cost constraint is the major drawback leading to the low adoption of Tier 4 facilities. However, with data traffic generation, the upcoming facilities will have Tier 4 certification since this tier enables the site infrastructure to sustain unplanned failures that would otherwise adversely affect the critical load. Tier 4 facilities are expected to hold a market share of 22.4% by 2029, up from 2% in 2023 and 66 MW by value in 2022.
• Tier 1&2 data centers are the least preferred due to their expected uptime of 99.671% (28.8 hours of downtime annually). These data centers are commonly utilized by micro businesses that want a cost-effective solution for their data storage needs. However, due to lower functionality, even SMEs are focusing on adopting wholesale colocation services under Tier 3 facilities. Tier 1 &2 DCs are expected to showcase the least growth through the forecast period.

Ireland Data Center Industry Overview

The Ireland Data Center Market is fairly consolidated, with the top five companies occupying 80.73%. The major players in this market are CyrusOne Inc., Digital Realty Trust, Inc., EdgeConneX, Inc., Equinix, Inc. and K2 Strategic Pte Ltd (Kuok Group) (sorted alphabetically).

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