Ireland's Data Hosting Industry
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Ireland’s Data Hosting Industry 2018 Q2 Update “Irish Data Centres, an Industry of Substance” Ireland’s Data Hosting Industry 2018 Q2 Update July 2018 Ireland’s Data Hosting Industry 2018 Q2 Update Foreword It has been an eventful three months for the recognition of the challenges facing the data centre industry in Ireland with the main industry in areas such as renewable energy, focus of attention landing squarely at Apple’s infrastructure and planning. decision not to progress with its €850m data centre investment in Athenry. Ireland’s contribution to the global data centre industry continues to grow also with demand There was much cause for concern that the increasing for Irish companies, skills and impact of the decision would greatly temper expertise to lead projects across the US, Ireland Inc’s ability to attract continued Europe and Asia cementing our position as a investment in data centres but our 2018 global industry player. Quarter 2 report shows momentum continues to grow. We are also seeing potential for the use of data centres to augment any future district From April to June of this year over €1 billion heating systems here in Ireland. While the of new data centre investments were heat off the data centres is low grade it is announced from CyrusOne, Crag Digital, consistent with how centres can add value to Equinix and others. This brings the total already established and functioning district investment expected from the construction of heating systems which have been seen across data centres up until 2021 in Ireland to €9.3 the US and Europe and could make a tangible billion. There were also a combined total of impact here in Ireland too. 1,400 new jobs announced from Amazon and This report is a Host in Ireland report with Google over the next three years linked to technical input and qualification from Bitpower their data operations in Ireland. to examine the opportunities and risks associated with the digital asset hosting The additional investment announcements industry in Ireland. come on the heels of a report by Grant Thornton on behalf of the IDA published in By providing the most timely and accurate May examining the economic benefits of data update on data centre activity in the Irish centre investment in Ireland. The report found market, we believe that this baseline will act as that data centres in Ireland employed 5,700 a useful reference for policymakers. This will people in full time roles between construction be beneficial to Ireland as we look to continue and operational roles and generated €1.6 our leadership in the creation, retention and billion direct and €2.6 billion in indirect exporting of digital products for the long economic benefits to Ireland since 2010 term. including the engagement of 1,000 suppliers, 90% of which benefit Irish companies. Garry Connolly This quarter also seen the Government’s President & Founder – Host In Ireland statement on ‘The Role Of Data Centres In Ireland’s Enterprise Strategy’. We welcome the Government’s recognition of the importance and strategic significance of the data centre industry in Ireland and its Ireland’s Data Hosting Industry 2018 Q2 Update Updated Data, Analysis and Dashboard Q2 2018 This Q2 2018 supplement augments our 2017 The data hosting industry continues to invest report with Host in Ireland and the Sustainable over €1 billion per annum in developing Energy Authority of Ireland - “Ireland’s Data facilities in Ireland. The growth trend of Hosting Industry 2017”. We continue to incumbent operators continues, and more new provide quarterly updates on the scale, digital hosting companies have entered the growth, and sustainability of Ireland’s data Irish market in 2018. In Q2, over €1Billion of hosting industry. We welcome any inputs, new projects were announced. corrections, or contributions. In this edition, we have updated our map of data centre facilities. Our dashboard summarises the key numbers in terms of power and investment, and our analysis provides context for policymakers. Our objective is to continue to maintain a This quarter, we also provide a brief watch on the growth of the commercial data commentary on research considerations for hosting industry in Ireland. We will report in an district heating systems and outline some aggregated manner, and all our data comes recommendations for an Irish legislative policy from publically available sources. on Corporate PPAs for renewable energy. There is now estimated to be 483 MW of data centre capacity in operation in Ireland. Construction continues on a further 138 MW in David McAuley 2018. Planning is proving less of a barrier, with Founder & CEO – Bitpower 323 MW of facilities holding full planning permission. Planning applications are in progress for 192 MW. Apple’s decision to abandon plans in Athenry does not seem to have affected the growth of the Industry. Ireland’s Data Hosting Industry 2018 Q2 Update Data Market Developments in Q2 2018 The first half of 2018 saw a continuation of Colocation Wholesale development and growth in the Dublin Metropolitan Area. In Q2, new planning CyrusOne and Crag Digital are in applications included 144MW of additional the planning process. Orion has data centre facilities across ten new data halls. full planning permission for three Confirmation of expansion plans by data halls in Ballycoolin powered Hyperscales also demonstrate this growth on-site using natural gas. The K2 trend. New plans in Q2 indicate an additional Datacentres facility in Ballycoolin is expected €1billion of investment over the coming years. to commence operation in Q3. There are forty-six data centre facilities in operation in Ireland in Q2 2018. Colocation Data Centres HprPr In 2018, Digital Realty HprCo Private commenced construction of their 4% new facility at Profile Park. Equinix Colocation received planning permission for 14% Hpr Hy a new facility in Blanchardstown. HprW Hpr Hy Colo Keppel DC continue to upgrade their Wholesale 8% Hpr Hy Parkwest site, and InterXion are up and Hpr Hyperscales Hy running at their Grange Castle facility. Hpr 74% Hy Private Data Centres We are unaware of any Figure 1 - Relative scale of digital hosting significant developments since types in Ireland in 2018. 2017, though a number of tech jobs announcements in Q2 2018 indicate this sector remains healthy. Hyperscale Data Centres Edge Data Centres We have not identified any new Edge data centres in Ireland in this update, and we have not estimated their Microsoft, Amazon, Google, and Facebook all growth in our model, but we have operational facilities in the greater do expect them to begin Dublin area. Expansion plans continue, with appearing very soon. Facebook announcing it will grow in Clonee, and Google planning for expansion in Grange Castle. Amazon continue to develop in Dublin. Ireland’s Data Hosting Industry 2018 Q2 Update Ireland’s Data Hosting Industry 2018 Q2 Update Scale of Ireland’s Data Industry in Q2 2018 There are forty-six operational data facilities of various types operating in Ireland in 2018. 483 MW up 3MW Total connected data centre power capacity in The average size of buildings has increased Q2, 2018 over the years, moving from 5-10 MW in the 2000’s up to 15-20 MW+ today. The diagram below shows the approximate size of 138 MW operational facilities in Ireland in 2018. up 28MW data centres in construction in 2018 Eight new buildings are in construction totalling 138 MW, and a further twelve have 305 MW approved planning permission for 305 MW. up 15MW New planning applications were submitted for with full planning permission ten new data halls. Note - To calculate the power capacity, we 184 MW have aggregated data from several sources. up 144MW We first calculated the total maximum power in the planning process capacity across all facilities identified using a methodology described in Appendix II of the 344 MW 2017 report. Power capacity relates to the Masterplans infrastructure required to deliver power through the national grid. Ireland Hosts Commercial Data Centres of all Sizes Forty-six operational data centres in Ireland in Q2 2018 <1 MW 1 MW to 10 MW 10 MW to 20 MW 20 MW to 40 MW 10 16 12 8 Ireland’s Data Hosting Industry 2018 Q2 Update Investment in Data Centres Our estimates of construction investment in Our model selects an investment year for a data centres have been updated to account given project, but in reality, expenditure for industry developments since our 2017 during the construction of a data facility may report. In 2017, €1.2 Billion was invested in span several years. The diversity of projects at constructing data facilities. We expect various stages tends to smooth out our investment of approximately €1.1 Billion in projection. 2018, €1.5 Billion in 2019, and €1.4 Billion in 2020, as shown below. The total cumulative These estimates represent the investment in investment to date is approximately €5 Billion. land, buildings and energy infrastructure only. By 2021, €9.3 Billion will have been invested. The computer servers, storage, and racks See Figure 2 below. contained in data centres are a separate investment. We use estimates of between New developments and growth by existing €3M and €7.5M per MW of data centre operators are helping to drive investment in capacity depending on the type of facility. the data industry. The demand for data keeps growing and Ireland’s digital ecosystem is keeping pace with demand. Construction Investment in Data Centres in Ireland 2009 - 2021 €10,000€ 10 BnM 2017 Projection 2018 Q2 Revised Projection €8,000€ 8 Bn M €6,000€ 6 Bn M €4,000€ 4 Bn M €2,000€ 2 Bn M € €00 Bn M €2,000 M € 2 Bn €1,000 M € 1 Bn € 0€0 Bn M 20092010202011 120121 20132014 2015 2016 201720172018 2019 202020202021 Figure 2 – Construction Investment in Data Centres 2009 – 2021 – Cumulative and Annual.