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Pictured at the launch of the report, "Digital Infrastructure for the Future We Want", were Darren Maher, Managing Partner, Matheson LLP, Jim Power, Amárach Research, Minister of State Timmy Dooley, Michelle Wallace, Interim CEO, Digital Infrastructure Ireland and Maurice Mortell, Chairperson, Digital Infrastructure Ireland.
An economic study on the data centre industry has revealed the critical role the centres play in Irish corporate tax windfalls and in the €107.5 billion in taxes paid here by the ICT industry. The study by economist Jim Power and statistician Gerard O Neill from Amárach Research has also sounded a warning bell that the ongoing limitations on the development of datacentres are now posing a considerable risk to Ireland's attractiveness as a location for foreign direct investment.
Speaking at the launch of the report, Minister of State at the Department of Climate, Energy and the Environment, Timmy Dooley, said: "Ireland's data centre ecosystem is and will continue to be a critical driver of national economic performance, underpinning high?value sectors, foreign direct investment, digital competitiveness, operational resilience, and export growth, while supporting tens of thousands of jobs."
Maurice Mortell, Chairperson of Digital Infrastructure Ireland added: "Ireland has a long history of attracting investment and has positioned itself as one of Europe's leading locations for digital infrastructure. Sustaining Ireland's taxes and its role as a leading investment hub requires a National Digital Strategy that integrates digital infrastructure, energy, planning and industrial policy to support long term competitiveness. The Government's announcements must now translate into tangible actions. With a renewed approach, Ireland can lead the next generation in developing sustainable, high performance digital infrastructure – but delivery is essential. The reality is that considerable taxation is paid where IP assets are located and this has been instrumental to the strong growth in corporation tax revenues since 2015.
The risk is that if data centres are going to be built in other locations, because they cannot be built in Ireland, the IP assets could follow the data centres, with very negative implications for Irish corporation tax revenues. Ireland is losing business and global companies are moving their investment pipelines elsewhere."
The study, "Digital Infrastructure for the Future We Want", says there has been €18 billion in investment from Ireland's data centre ecosystem, spanning across 105 facilities and 35 operators. It finds that the economic significance of data centres is greater than the direct employment they create and the vital element of critical infrastructure that they provide. "Data centres are essential for the Government's AI and digital strategy, the modernisation of the public sector and the indigenous business economy," the report notes.
"Ireland has a high dependence on foreign-owned companies in terms of employment, corporation and income tax receipts, and general economic activity. Given this high level of 'concentration risk' there is considerable pressure on Ireland to preserve its status as a good country in which to do business. That is now under considerable pressure," the authors say.
The report highlights that a lot of global intellectual property is stored in Ireland and is a major contributor to tax revenues. "Many of the largest corporations in Ireland are in high-tech industries like pharmaceuticals or information technology that rely heavily on IP. Unlike a building or a machine, it is very easy to move Intellectual Property into or out of a country. There is a lot of Intellectual Property held in Ireland. Some of it has been produced here, while much is imported between different arms of the same multinational corporation."
"The location of IP in Ireland makes a significant contribution to exports of goods and services from Ireland. In 2024, exports of computer services...