THE data centre industry in Ireland is “fundamental” to maintaining the nation’s position as a technology leader a new report has found.
The sector, which has grown significantly across the country in recent years, was the focus of a review by the global accounting firm KPMG.
Their analysis of the impact of the sector in Ireland found that data centres are a “critical component of Ireland’s digital infrastructure, supporting economic activity, employment and investment across the wider economy”.
In their report, issued this week, KPMG found data centres “underpin much of Ireland’s broader economic activity”, bringing €100bn in annual gross value added (GVA) to the nation.
They also found the sector provides for 875,000 jobs, which constitute €14.6bn in annual employment-related taxes.
The report further highlights that in 2024 the construction and operation of data centres across the country collectively accounted for €2.2bn in GVA, 19,500 jobs and €280m in employment-related-tax.
A Google data centre in Dublin“The analysis confirms that data centres are fundamental to Ireland’s position as a leading global hub for digital and technology-driven enterprise,” a spokesperson for the Department of Enterprise, Tourism and Employment said as they shared the report.
“They form a critical part of the State’s digital infrastructure, supporting activities including cloud computing, artificial intelligence, financial services and public sector digital services,” they added.
Minister for Enterprise, Tourism and Employment, Peter Burke said the reports provides “clear evidence” of the “critical contribution that data centres make to the Irish economy”.
“The sector plays a central role in supporting investment, anchoring high-quality jobs and promoting Ireland’s position as a leading global digital hub,” he added.
“The report highlights that the continued development of data centre capacity must be aligned with Ireland’s economic, energy and climate objectives; through our new Large Energy User Plan, all new data centres must provide their own energy generation onsite or nearby, 80% of which must be from renewable sources.
“Government is taking a strategic, plan-led approach to ensure that this growth supports our wider economy, strengthens our competitiveness and is delivered in a sustainable way."
There are currently 72 data centres in operation in Ireland.
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