Skip to content
Welcome, thoughtbot's Giant Robots listeners!Start here
Data Centres: Boom and Backlash
4AUG

Dublin slips to 15% as growth heads north

2 min read
10:53UTC

DC Byte puts Dublin at 15 per cent of data-centre capacity across five western European hubs against London's 39 per cent, with Microsoft reported to be looking to the Nordics instead.

IndustryDeveloping
Key takeaway

Dublin holds 15 per cent of west European capacity against London's 39, with growth moving to the Nordics.

Market-intelligence firm DC Byte puts Dublin at 15 per cent of data-centre capacity across five major western European hubs, against London's 39 per cent and 18 per cent each for Frankfurt and Paris, in figures reported by the Irish Times on 28 July⁠1. The same report has Microsoft looking to the Nordics for new capacity. Those are one vendor's market-share estimates rather than a regulator's count, and the Nordic pivot is an inference drawn from them rather than a company statement.

The consumption side rests on firmer ground. Data centres took 24 per cent of Irish electricity in 2025, up from 5 per cent in 2015, and are projected past 30 per cent by 2030⁠2. Close to a quarter of everything the Irish grid delivers already goes to buildings full of servers, in a country of 5.4 million people.

CRU requires new large users to match 80 per cent of consumption with renewables and to bring autoproducer generation, meaning plant the data centre builds and runs for itself rather than drawing from the public system. Pure DC's Dublin microgrid was the template for complying and staying. Others did the arithmetic and left.

Ireland ran this experiment before anyone else, which makes it the closest thing to a controlled result the sector has. Kajaani in Finland already ranked among the best greenfield data-centre locations globally when we covered it, so the destination was never a mystery. What Dublin demonstrates is the size of the response: terms that operators can meet but would rather not still move roughly a fifth of a market.

Deep Analysis

In plain English

Big tech companies like Amazon, Microsoft and Meta run cloud computing out of data centres scattered across Europe. Dublin used to be one of the biggest hubs, but a market-research firm called DC Byte says its share of that European capacity has fallen to 15%, well behind London's 39%, because Ireland's power grid cannot easily supply more. Microsoft is reportedly now looking to the Nordics, where electricity and cooling are cheaper and more available, for its next wave of data centres instead.

What could happen next?
  • Consequence

    Ireland risks losing future hyperscaler investment to less grid-constrained markets even as its existing data-centre footprint remains in place.

First Reported In

Update #12 · Ofgem prices the grid queue by the megawatt

The Irish Times· 4 Aug 2026
Read original →
Causes and effects
This Event
Dublin slips to 15% as growth heads north
Ireland set terms rather than a ban, and a share of the growth went to jurisdictions where power is cheaper and the queue shorter.
Different Perspectives
Chilean data-centre developers
Chilean data-centre developers
Seven projects, one linked to Google, asked SEA this month for rulings that they fall outside full environmental review; four declared diesel-storage volumes just under the review-triggering tonnage, mirroring the mechanism Alto Jahuel used in July. The clustering suggests the threshold is being engineered, not sized to need.
An Coimisiun Pleanala
An Coimisiun Pleanala
Ireland's planning appeals body refused the €1.5bn Killala data centre on 17 September, overturning Mayo County Council's 2025 grant for lack of a fixed grid-connection agreement and no corporate renewable power-purchase agreement. The ruling makes matched-power evidence, not planning consent alone, the deciding factor.
Housing Assembly and Foxglove
Housing Assembly and Foxglove
The two groups' 6 August appeal, filed through the Legal Resources Centre, kept Cape Town's approval of Equinix's data centre suspended through this window over missing water, emissions, noise and diesel-generator data. Deputy Mayor Eddie Andrews confirmed on 20-21 September that the suspension holds.
Brazil (President Lula, signing Redata)
Brazil (President Lula, signing Redata)
Lula signed Lei 15.504 on 15 September, creating the Redata tax programme and keeping the Senate's water cap with no veto, while Aneel authorised Scala's AI City to join the national grid from January 2028. Brazil is recruiting capacity other markets are now turning away.
Aragon regional government (Eva Valle)
Aragon regional government (Eva Valle)
Aragon's economy chief Eva Valle said on 11 September that Spain's draft decree, requiring 80% hourly-matched renewables via a 10-year power-purchase agreement, is unmeetable by any project and threatens Blackstone, Azora and Microsoft builds already under way. Aragon holds 3,600 MW of granted grid access against 108 MW built.
Texas Governor Greg Abbott
Texas Governor Greg Abbott
Abbott ordered TCEQ on 21 September to halt every pending data-centre permit until projects pay their own way and complete ERCOT and Texas Water Development Board audits. Texas built the country's most permissive data-centre market; freezing it signals even that market has hit its grid limit.