Data Centers in Shannon
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Shannon – Strategic Edge Resilience for Western Ireland
Strategic Regional Redundancy
Shannon serves as a critical alternative to the power-constrained Dublin market, providing high-availability infrastructure for aviation and medical technology sectors. It offers an ideal edge location for enterprises requiring localized processing or a geographically separated disaster recovery site within Ireland.
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Solid regional backhaul to national fiber rings. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Nearest hub is Dublin via low-latency waves. |
| Power Cost | €0.22–€0.28/kWh – as of September 2025 | Competitive rates with high renewable mix. |
| Disaster Risk | Low (2.1/10) – as of September 2025 | Stable environment with managed coastal risks. |
| Tax Incentives | Yes | Includes 6% sales tax exemption on hardware. |
| Sales Tax | 23% VAT – as of September 2025 | Standard Irish rate for hardware and services. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality: Carrier count: over 5 carriers as of September 2025. While the market is smaller than Dublin, it features a concentrated selection of national and international fiber providers. This density supports competitive transit pricing for local industrial users.
Direct Cloud On-Ramps: Over 0, enabling access to 0 cloud regions as of September 2025. No hyperscale on-ramps are physically located in Shannon. High-speed private extensions or wave services to Dublin remain the standard method for reaching major platforms.
Internet Exchange Points (IXPs): Most peering occurs via INEX in Dublin, though local providers offer direct backhaul to ensure efficient traffic flow. This setup keeps regional traffic localized without routing through international gateways.
Bare Metal: Physical infrastructure is available for rapid deployment through global providers such as Leaseweb or OVHcloud. These services allow businesses to bypass 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.
Power Grid Reliability: The local grid is purpose-built to support the Shannon Free Zone and the international airport, featuring redundant supply lines. 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, the largest multi-sectoral industrial park in Ireland. This allows for low-latency connections to firms in the aerospace and medical device industries.
Regional Market Reach: Shannon is the primary digital gateway for the Mid-West. It effectively serves population centers in Limerick and Galway, providing a decentralized compute option that avoids the congestion 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 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 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.
- Drought (0.5): Minimal risk with negligible impact on local infrastructure cooling.
Other hazards such as earthquake activity are classified as minor or are not listed as material threats as of September 2025.
