Data Centers in Shannon
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Shannon – Strategic Irish Digital Gateway
Shannon represents a strategic, low-risk entry point into Ireland, distinct from the concentrated Dublin market. For businesses prioritizing operational stability, favorable tax conditions, and access to a unique regional economic hub, Shannon provides a compelling alternative for deploying resilient infrastructure. Its stable risk profile and access to transatlantic connectivity routes protect digital assets and ensure uptime.
Shannon: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Solid national and international connectivity, though less dense than primary European hubs. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Direct access is available via private network extension to the primary hub in Dublin. |
| Power Cost | €0.15–€0.19/kWh | Industrial electricity with a high component of renewable wind energy in the national grid. |
| Disaster Risk | Very Low (2.1/10) | Minimal exposure to significant natural disasters, enhancing operational reliability. |
| Tax Incentives | Varies | Includes potential exemptions from sales tax on data center equipment purchases. |
| Sales Tax | 23% VAT | The standard Value Added Tax rate for Ireland, as of September 2025. |
Network & Connectivity Ecosystem
Shannon's connectivity is robust for a secondary market, leveraging Ireland's position as a key transatlantic data corridor. While not as dense as Dublin, the ecosystem provides sufficient capacity and diversity for most enterprise and disaster recovery needs.
Carrier Density & Carrier Neutrality The market is served by at least 1 provider, offering access to a range of national and international carriers, as of September 2025. Carrier-neutral facilities ensure competitive network pricing and interconnection options.
Direct Cloud On-Ramps There are 0 direct cloud on-ramps located in Shannon, as of September 2025. High-speed, low-latency private network interconnects (PNI) and wavelength services provide direct access to all major cloud providers in the primary Dublin hub, including AWS, Google Cloud, and Microsoft Azure.
Internet Exchange Points (IXPs) Direct public peering is not available within Shannon. Businesses typically connect to INEX, the Irish Internet Exchange Point located in Dublin, to peer directly with other networks and content providers.
Bare Metal Bare metal server options are available, providing dedicated compute resources for performance-sensitive applications. Providers such as Hivelocity offer deployment capabilities in the region.
Power Analysis
Ireland's power grid is modern, with a significant and growing share of renewable energy, particularly from wind.
Average Cost Of Power Industrial power costs typically range from €0.15–€0.19/kWh, as of September 2025. This rate is competitive within Western Europe and benefits from Ireland's investment in renewable energy sources.
Power Grid Reliability The power grid is well-engineered and reliable. Data centers in the region are supported by redundant power feeds from the national grid, ensuring high levels of uptime for critical operations.
Market Access, Business & Tax Climate
Shannon offers a unique business environment characterized by its proximity to specialized industrial and technology clusters and a favorable tax regime.
Proximity To Key Business Districts Data centers in Shannon are situated near the Shannon Free Zone, an international business park that hosts aerospace, technology, and logistics companies. This proximity offers low-latency connectivity for local enterprises.
Regional Market Reach Shannon serves as an excellent digital hub for the West of Ireland and provides a strategic disaster recovery location for operations based in Dublin. It also offers a secondary Irish gateway to markets in the UK, mainland Europe, and North America via subsea cables.
Tax Advantage For Data Centers Ireland offers specific tax incentives that can benefit data center operators and their customers. A key advantage includes an exemption from the standard 6% sales tax on the purchase of qualifying data center equipment, directly reducing capital expenditure.
Natural Disaster Risk
Based on the INFORM Risk Index, Shannon has a Very Low overall risk score of 2.1 out of 10, as of September 2025. This indicates an extremely stable environment for data center operations with minimal threat from natural hazards.
Key risk factors are minor and include:
- Coastal Flood: 5.9/10
- River Flood: 3.5/10
- Tsunami: 1.8/10
- Drought: 0.5/10
The risk from earthquakes and tropical cyclones is negligible. The area's low-risk profile is a significant advantage for mission-critical infrastructure requiring maximum uptime.
