What you need to know
- An independent KPMG report describes data centres as critical infrastructure supporting Ireland’s economy, digital services, AI, foreign direct investment, and high-tech construction exports.
- It estimates that in 2024, data centre construction and operation accounted for €2.2 billion in gross value add (GVA), 19,500 jobs and €280 million in employment-related tax.
- The report identifies data centres as supporting cloud computing, AI, financial services and public sector digital services.
- It concludes that continued, managed development of the sector will be important to Ireland's future competitiveness and economic growth.
The value of data centres to Ireland
The Department of Enterprise, Tourism and Employment commissioned an independent report by KPMG titled, The Value of Data Centres to Ireland. The report was published by the Minister on 2 June 2026. Its purpose is to assess the economic contribution and strategic importance of the sector in Ireland. The report makes an important contribution to the ongoing discussion about the role of data centres in Ireland's economy and wider society. The report concludes that data centres have become a critical part of Ireland's national digital infrastructure. It also highlights that data centres play an important role in supporting business and economic growth across Ireland.
For developers, one of the report's key findings is its recognition of the sector's role as enabling infrastructure. The report notes that data centres support a wide range of activities including:
- Cloud computing
- Artificial intelligence
- Financial services, and
- Public sector digital services
According to the report, these facilities now form part of the infrastructure on which many digital and technology-driven businesses depend.
The report also highlights the sector's broader economic contribution. According to KPMG's analysis, in 2024 the construction and operation of data centres:
- Generated approximately €2.2 billion in GVA ,
- Supported approximately 19,500 jobs, and
- Generated approximately €280 million in employment-related taxes
The report finds that the value of data centres extends beyond the technology sector, supporting economic activity across industries that depend on digital infrastructure.
International digital hub
Another key theme is Ireland's position as an international digital hub. Data centres are noted as fundamental to Ireland's attractiveness as a location for digital and technology-focused investment. The report identifies access to reliable, high-performance digital infrastructure as an increasingly important consideration for multinational businesses. This is particularly relevant to those operating in technology-intensive sectors. According to the report, the availability of data centre capacity strengthens Ireland's ability to attract and retain foreign direct investment.
High-tech construction
The report also highlights the benefits flowing from the construction of data centres. KPMG finds that the development of data centres has contributed to the growth of Ireland's high-tech construction sector. It has also helped develop specialist expertise within Irish companies. It is estimated that approximately €2.1 billion of high-tech construction exports from Irish-owned firms in 2024 was linked to data centre-related activity. This represents around 40% of these exports.
Future challenges
The report notes challenges for the future growth of the sector. It acknowledges issues associated with:
- Increasing energy demand
- Pressure on grid capacity and
- The need to manage carbon emissions in line with national climate objectives
However, it also identifies opportunities arising from future development. These include support for renewable energy deployment and wider regional economic development.
For developers, perhaps the most significant conclusion is that the report views data centres as infrastructure that extends beyond the sector itself. It notes that data centres generate not only direct economic benefits through construction and operation but also enable activity across a range of digitally-intensive industries. These include:
- Information and communications technology
- Finance
- Healthcare
- Retail and
- Professional services
The report therefore positions data centres as an important enabler of broader economic activity rather than a stand-alone industry.
Looking ahead, the continued development of the data centre sector will be important to maintaining Ireland's competitiveness. It will also help support the country’s digital economy, enabling future economic growth. At the same time, the report emphasises the importance of ensuring that future expansion is managed in a way that takes account of energy, environmental and infrastructure considerations.
Conclusion
The independent report presents a strong endorsement of the strategic and economic importance of data centres to Ireland. For developers, the report provides independent evidence that data centres are viewed as critical infrastructure supporting Ireland's digital economy and investment attractiveness. While recognising challenges relating to energy demand and sustainability, the report concludes that continued and carefully managed growth of the sector will play an important role in Ireland's future economic development.
For more information and expert guidance, please reach out to a member of our Planning & Environment team.
The content of this article is provided for information purposes only and does not constitute legal or other advice.
