Data Centers in Shannon
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Shannon – Strategic Gateway for Resilient Irish Infrastructure
Shannon serves as a compelling alternative to Dublin for enterprises requiring robust, scalable infrastructure with a focus on disaster recovery and operational stability. Its favorable risk profile and available tax incentives provide a secure and cost-effective platform for workloads supporting Western Ireland and serving as a secondary site for European operations.
Shannon: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Solid national connectivity, though international routes often transit through Dublin. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Nearest on-ramps are in Dublin; access via private network extension is common. |
| Power Cost | €0.19 – €0.24/kWh | Industrial electricity prices can be higher than other EU hubs, impacting operational costs. |
| Disaster Risk | Low (2.1/10) – as of September 2025 | Very low exposure to significant natural hazards, ensuring high operational uptime. |
| Tax Incentives | Yes | Includes a significant exemption from the sales tax on data center equipment purchases. |
| Sales Tax | 23% VAT – as of September 2025 | Standard Irish Value Added Tax applies to most goods and services. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality: As a secondary market, Shannon offers access to a focused group of national and regional carriers, as of September 2025. Carrier-neutral facilities provide connectivity options, though the ecosystem is less dense than in Dublin.
Direct Cloud On-Ramps: There are no direct public cloud on-ramps within Shannon, as of September 2025. Businesses connect to cloud providers like AWS, Google Cloud, and Microsoft Azure through dedicated private network links to data centers in Dublin.
Internet Exchange Points (IXPs): The primary Internet Exchange Points for Ireland are located in Dublin. Peering in Shannon is typically handled privately or routed through these national exchanges to optimize traffic flow.
Bare Metal: Bare metal server options are available in the Irish market, primarily from providers located in Dublin. Companies like phoenixNAP and Hivelocity can serve regional needs through their European data centers.
Power Analysis
Average Cost Of Power: Industrial power costs in Ireland, including Shannon, are estimated between €0.19 and €0.24/kWh, as of September 2025. This price point is a critical factor for high-density deployments and should be carefully modeled in total cost of ownership calculations.
Power Grid Reliability: Ireland's national power grid is well-engineered, with significant investment in renewable energy, particularly wind. Data centers in key industrial zones are supported by redundant power feeds and substation architecture to ensure high levels of availability.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Data centers in the Shannon region are strategically located to support the growing clusters of life sciences, technology, and aviation businesses in County Clare and the wider Munster region. This proximity enables low-latency services for critical local industries.
Regional Market Reach: Shannon provides effective digital infrastructure access for the western half of Ireland. It is also an ideal location for a secondary or disaster recovery site for companies with a primary presence in Dublin or the UK, offering geographic diversity.
Tax Advantage For Data Centers: Ireland offers a significant tax incentive by exempting data center equipment purchases from its 23% Value Added Tax (VAT). This measure directly reduces the capital expenditure required for building out or refreshing hardware, making large-scale deployments more affordable.
Natural Disaster Risk
Shannon has a very low natural disaster risk profile, with an INFORM Risk score of 2.1 out of 10, as of September 2025. This ensures a stable operating environment with minimal threat of disruption from natural events.
The primary environmental hazards to consider are:
- Coastal Flood: Rated at 5.9/10, this is the most notable hazard for the country, though specific site elevation mitigates risk.
- River Flood: With a score of 3.5/10, this risk is localized to specific low-lying areas near waterways.
- Tsunami: Scored at 1.8/10, representing a very low probability but considered due to the Atlantic coastline.
- Drought: Rated at 0.5/10, indicating a negligible risk to operations.
