Data Centers in Letterkenny
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Letterkenny, Ireland – Strategic Edge & Disaster Recovery
Letterkenny serves as a strategic edge data center market for northwest Ireland and a viable disaster recovery location for primary deployments in Dublin. This market is ideal for organizations requiring low-latency performance for regional end-users and for building resilient, geographically diverse Irish infrastructure. Deploying here ensures applications and data are positioned closer to the user base in County Donegal and surrounding areas, improving service delivery.
Letterkenny, Ireland: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | A focused regional market, not a primary international hub. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Direct cloud access is available via network extension from Dublin. |
| Power Cost | €0.18 – €0.24/kWh (est.) | Mix is ~40% renewables and ~60% fossil fuels. |
| Disaster Risk | Low (2.1/10) – as of September 2025 | Very low exposure to significant natural disasters. |
| Tax Incentives | Varies | Ireland offers a highly favorable national corporate tax structure. |
| Sales Tax | 23% VAT – as of September 2025 | Standard Irish Value Added Tax rate applies. |
Network & Connectivity Ecosystem
As an edge market, Letterkenny provides focused connectivity for the surrounding region, with primary interconnection happening in Dublin.
Carrier Density & Carrier Neutrality: Carrier availability is limited, with fewer than 5 providers present as of September 2025. The data center environment offers access to key regional and national networks sufficient for local enterprise and content delivery needs.
Direct Cloud On-Ramps: There are no direct public cloud on-ramps within Letterkenny as of September 2025. Businesses connect to all major cloud providers, including AWS, Google Cloud, and Microsoft Azure, through dedicated private network links to carrier hotels and data centers in Dublin.
Internet Exchange Points (IXPs): Peering is not handled locally. Traffic is exchanged through INEX (Ireland's Internet Neutral Exchange) in Dublin, which provides the primary point of interconnection for the entire country.
Bare Metal: Bare metal server options are available, typically provisioned by national providers for deployment into regional facilities. Providers like Hivelocity can serve customers with dedicated infrastructure needs in secondary Irish markets.
Power Analysis
Average Cost Of Power: Expect industrial power rates between €0.18 and €0.24 per kWh, as of September 2025. This pricing is competitive for a European edge location and allows for predictable operational spending. The national grid is a mix of approximately 40% renewables (mostly wind) and 60% fossil fuels (mainly natural gas).
Power Grid Reliability: The power grid serving the region is stable and suitable for commercial and enterprise operations. Data centers in the area are supported by standard N+1 redundancy for UPS and generator backup, ensuring uptime for critical workloads.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Data centers in Letterkenny are positioned to serve the primary commercial, retail, and administrative center of County Donegal. The location supports local enterprises and public sector organizations, including the Atlantic Technological University.
Regional Market Reach: This market provides excellent low-latency connectivity for the northwest of the Republic of Ireland and across the border into Northern Ireland. It is a logical point of presence for serving a distributed population outside the main Dublin-Cork-Galway corridor.
Tax Advantage For Data Centers: Ireland's primary incentive is its highly competitive 12.5% corporate tax rate, one of the lowest in Western Europe. This national policy provides a significant financial benefit for any company establishing operations in the country, including in Letterkenny.
Natural Disaster Risk
Letterkenny has a very low natural disaster risk profile, with an INFORM Risk score of 2.1 out of 10 as of September 2025. This makes it a physically secure location for IT infrastructure.
The primary environmental hazards to consider are localized flooding events.
- Coastal Flood Risk: 5.9/10
- River Flood Risk: 3.5/10
- Tsunami Risk: 1.8/10
Risks from earthquakes, tropical cyclones, and drought are negligible. The area's low overall risk profile enhances its appeal as a disaster recovery site for operations based in more congested urban areas.
