Data Centers in Shannon
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Shannon – Secure Edge Infrastructure for the West Coast
Strategic Resilience for Western Ireland
Shannon serves as a critical infrastructure anchor for Ireland’s west coast, providing a stable alternative to the concentrated Dublin market. It is a strategic site for enterprises requiring resilient disaster recovery or localized edge processing for the region’s aviation, logistics, and manufacturing sectors.
Shannon: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Reliable regional access via national fiber backbones. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Nearest major cloud connectivity hubs are in Dublin. |
| Power Cost | €0.22–€0.28/kWh – as of September 2025 | Reflects Irish industrial rates and a high renewable mix. |
| Disaster Risk | Low (2.1/10) – as of September 2025 | Stable environment with managed flood considerations near the estuary. |
| Tax Incentives | Yes | Includes 6% sales tax exemption on data center equipment. |
| Sales Tax | 23% VAT – as of September 2025 | Standard Irish rate for services and hardware. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality: Carrier count: over 5 carriers as of September 2025. The market provides a concentrated selection of national and international fiber providers. This density supports competitive transit pricing and redundant routing for local industrial users.
Direct Cloud On-Ramps: Over 0, enabling access to 0 cloud regions as of September 2025. No direct on-ramps from hyperscale providers are physically located in Shannon. High-speed private extensions via PNI or wave services to Dublin are the standard method for reaching these platforms.
Internet Exchange Points (IXPs): Most peering occurs via INEX in Dublin, though local providers offer direct backhaul to ensure low-latency access to the national exchange. This setup keeps regional traffic efficient without the overhead of routing through international gateways.
Bare Metal: Physical infrastructure remains available for rapid deployment through global providers such as Leaseweb or OVHcloud. These services allow businesses to bypass long hardware lead times while maintaining dedicated compute resources.
Power Analysis
Average Cost Of Power: Industrial electricity in Shannon typically ranges between €0.22/kWh and €0.28/kWh as of September 2025. The energy mix is approximately 40% renewables, primarily wind, which provides a sustainable profile for corporate reporting while keeping the region competitive with the broader Irish market.
Power Grid Reliability: The local grid is purpose-built to support the Shannon Free Zone and the international airport, featuring redundant supply lines and multi-substation support. This utility infrastructure ensures the high uptime required for mission-critical industrial operations.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Data centers here are located near the Shannon Free Zone, Ireland’s largest multi-sectoral industrial park. This proximity allows for ultra-low latency connections to hundreds of firms in the aerospace and medical device industries.
Regional Market Reach: Shannon is the primary digital gateway for the Mid-West region of Ireland. It effectively serves the population centers of Limerick and Galway, providing a decentralized compute option that avoids the congestion and power constraints of the Dublin metro area.
Tax Advantage For Data Centers: Enterprises benefit from a specific 6% sales tax exemption on data center equipment purchases to lower capital expenditures. This incentive reduces the cost of hardware refreshes and high-density deployments for regional operators.
Natural Disaster Risk
Shannon maintains a Low (2.1/10) risk profile as of September 2025. The environment is stable, though its estuarine location requires specific attention to water-related hazards.
- Coastal Flood (5.9): This is a primary concern given the proximity to the Shannon Estuary, though significant local defenses protect the industrial zone.
- River Flood (3.5): Moderate risk based on regional drainage patterns and seasonal rainfall.
- Tsunami (1.8): Considered a minor indirect regional risk with low probability of material impact on inland facilities.
- Drought (0.5): Minimal risk with negligible impact on local infrastructure cooling requirements.
- Earthquake (0.1): Seismic activity is effectively non-existent, ensuring structural safety for high-density racks.
Other hazards such as tropical cyclones are classified as minor or are not listed as material threats to local operations as of September 2025.