Data Centers in Letterkenny
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Letterkenny – Regional Edge for Northwest Ireland
Letterkenny serves as a strategic edge data center market for Northwest Ireland. It provides a crucial alternative to the primary Dublin hub for organizations requiring low-latency performance for regional operations, content delivery, and disaster recovery solutions in County Donegal and across the border into Northern Ireland.
Letterkenny: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Solid connectivity suitable for regional, not international, workloads. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Cloud access is available via private network extension to Dublin. |
| Power Cost | €0.18 – €0.22/kWh | High renewable mix; costs reflect national grid pricing outside primary hubs. |
| Disaster Risk | Very Low (2.1/10) – as of September 2025 | Minimal exposure to significant natural disasters, ensuring high operational uptime. |
| Tax Incentives | Varies | Ireland offers a favorable corporate tax environment; specific equipment exemptions may apply. |
| Sales Tax | 23% VAT – as of September 2025 | Standard Irish Value Added Tax rate applies to services. |
Network & Connectivity Ecosystem
Letterkenny is an emerging edge market, with connectivity concentrated on serving the immediate region rather than acting as an international gateway.
Carrier Density & Carrier Neutrality: Carrier options are limited, with a single primary provider in the local data center as of September 2025. This reflects the market's focus on regional and edge deployments.
Direct Cloud On-Ramps: There are no direct cloud on-ramps within Letterkenny. Secure, private connections to all major cloud providers, including AWS, Google Cloud, and Microsoft Azure, are established via network extensions to the primary connectivity hub in Dublin.
Internet Exchange Points (IXPs): The market contains no public internet exchanges. Peering is handled through private interconnects or via INEX (Ireland's Internet Neutral Exchange) in Dublin, which aggregates national and international traffic.
Bare Metal: Bare metal server availability is standard for the region. Providers like OVHcloud and Leaseweb can service the Irish market, offering dedicated compute for performance-sensitive applications.
Power Analysis
Ireland's power grid is modern and stable, with a strong emphasis on renewable generation, particularly wind power.
Average Cost Of Power: Industrial electricity rates typically fall between €0.18 and €0.22/kWh as of September 2025. This pricing is competitive for a European market with a high percentage of green energy.
Power Grid Reliability: The national grid is well-engineered and reliable. Data centers in regional markets like Letterkenny are supported by this stable infrastructure, ensuring consistent power delivery for critical operations.
Market Access, Business & Tax Climate
Letterkenny offers unique access to the Northwest of Ireland and a business-friendly environment.
Proximity To Key Business Districts: The local data center is positioned to serve businesses throughout County Donegal and the wider North West region. Its location is advantageous for local government, education, and enterprises requiring data processing closer to their end-users.
Regional Market Reach: This market effectively delivers low-latency services to a population of over 1.5 million across the Northwest of Ireland and Northern Ireland. It is an excellent location for edge computing and content caching.
Tax Advantage For Data Centers: Ireland is known for its favorable corporate tax structure. While specific local incentives can vary, the national environment supports foreign investment and technology infrastructure projects.
Natural Disaster Risk
Based on a comprehensive risk assessment, Letterkenny has a very low threat level from natural disasters, contributing to its viability as a secure location for data infrastructure.
The overall INFORM Risk score is 2.1 out of 10, placing it in the "Very Low" risk category as of September 2025. The primary natural hazards to consider, though still low in probability, are:
- Coastal Flood: The most significant listed risk, related to proximity to Lough Swilly, a large sea inlet.
- River Flood: A moderate risk from the River Swilly, which runs through the town.
- Tsunami: A low but present risk due to the area's connection to the North Atlantic.
- Drought: A very minor risk.
