AMAZON SPENDS €2BN ON IRISH DATA CENTRE NETWORK AS IT SEEKS PLANNING FOR NEW CENTRE

Publishing Date: Feb 04, 2021

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PRESS RELEASE: Online giant, Amazon has made an estimated capital spend of €2bn on its network of data centres here over the past decade.

That is according to economic consultants, Indecon who state in addition to the estimated €2bn capital spend by Amazon on its data centres between 2011 and 2020, the company has incurred an additional estimated operational spend of €2.4bn over the same period.

Findings from the Indecon report – commissioned by Amazon Web Services (AWS) – are contained in planning documentation lodged with Dublin City Council where Mullins Developments is seeking to construct two Amazon operated two storey data centre buildings at Clonshaugh Business and Technology Park in Dublin 17.

Each data centre building is to be 16,676 sqm and 16 metres high on a site 2.7km from Dublin airport on the city's north-side.

Planning documentation lodged with the new plan states that the project “represents a significant investment that will create direct, indirect and induced economic and employment benefits for the area”.

Confirmation of the scale of the Amazon spend on its data centres follow reports that the US company is to open a fulfilment centre at a business park at Baldonnell west of Dublin.

The Indecon report states that an analysis on AWS’s economic impact in Ireland shows that the company currently supports an estimated 8,700 jobs here.

It said this is made up of 3,100 AWS employees, 3,900 working for contractors and a further 1,700 jobs in induced employment from these activities.

According to the report, AWS's investment in the Irish economy is estimated to generate economic output effects of over €4.5bn over the next three years.

It states that between 2011 and 2020, AWS’s operations here has had a cumulative economic output of €7.5bn.

The report also estimates that AWS’s investment in the Irish economy for 2020 alone was expected to produce €1.45bn in additional economic output for the year and will have an annual economic output of €1.5bn for this year, next year and in 2023.

The US giant has concentrated its data centre building programme around the greater Dublin area and the Indecon report states that the AWS investment in data centres in the Dublin City Council area supports 2,378 jobs – a sixfold increase since 2011.

Documentation lodged with the application by applicants, Mullins Developments state that the proposed development “will cater for the growing demand for online services across the globe”.

The report states that the extent and scale of Amazon's facilities have grown in recent years and it is expected that this growth will continue in the coming years.

Amazon has already a number of data centres at various locations around Dublin – Clonshaugh Business and Technology Park; Blanchardstown Business and Technology Park, and in Tallaght on the Greenhills Rd and the Belgard Rd.

The report confirms that construction work commenced in the third quarter of 2019 on a data centre at Cruiserath, Dublin 15 and another in Co Meath in the second quarter of last year.

In relation to its new data centre plan for the Clonshaugh Business and Technology Park, the planning documentation states that at peak 400 workers will be employed during the construction phase of the data centre.

The documentation states that Amazon has three wind farms in Co Galway, Co Donegal and Co Cork that will produce 229MW of renewable energy each year that will support Amazon's data centre operations here.

The Cork project came online last September with the Galway and Donegal projects coming into operation next year.

Dublin City Council has requested additional information on the Amazon Clonshaugh data centre plan and a final decision will be made later in the year after the further information has been provided by the applicant.

 

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