The Data Centre Industry has been experiencing rapid growth over the past 10 years as more and more of our day-to-day activities are managed via the cloud. A recent report indicated that by the end of 2020, an estimated 1.7 MB of data is created every second for every person on earth!
With this meteoric rise in online activity, the data storage needed to meet this demand has accelerated over the last 5 years and particularly since 2020 as a result of the COVID-19 Pandemic.
The global market for Internet Data Centres estimated at US$59.3Bn in 2020, is projected to reach US$143.4 Billion by 2027, growing at a CAGR of 13.4% over the period 2020-2027.
There are many reasons why Ireland has become the largest enterprise hyperscale market in Europe.
The fact that Dublin is the European home of many of the world’s most familiar tech multinationals is a huge factor. These companies have had long, positive experiences being anchored in Ireland. As the requirement to house more and more data increased, the logical home for storing it was right here in Ireland.
The extraordinary rise of Ireland as one of the world’s leading Data Centre hubs is down to a number of key factors:
Our access to intercontinental cables & the only country in Europe with three fibre optic cables with the highest bandwidths.
Decades of leadership in the ICT global market has resulted in a diverse, skilled and experienced workforce – both in terms of data centre construction and operation.
A natural connecting point between the USA and Europe, with the only native English-speaking population in the EU.
While we in Ireland might complain incessantly about the weather, our naturally cooler climate system significantly reduces the operational cost of keeping data centres at an optimal, cool temperature.
The fibre optic cabling network in Ireland is quite advanced and has capacity to manage the needs of Data Centres.
The availability of power capacity & increasing levels of efficient renewable sources make Ireland very attractive from a cost & environmental impact point of view.
A range of Government incentives and initiatives makes Ireland a very pro business environment.
Data Sanctity & Security
Politically stable, commercially friendly, neutral country ensures the sanctity of the stored data and its security.
According to industry body, Host in Ireland, there are a total of 70 Data Centres now operational with this number expected to double by 2025. The investment in construction is estimated at €7bn+ over the next 5 years and €1.5bn+ in 2022 alone.
Data Centre construction involves a lot of different activities across multiple phases and involving a host of key players. The nature of these builds is that phase completion triggers payment down the supply chain.
This can create a working capital gap between the outlay required to keep the project on time and receipt of the phased payment.
Unexpected delays within the phases can also put any or all of the key players under sudden cashflow pressure.
With the explosion in online activity, accelerated by the pandemic, time to market is becoming a bigger influence as pressure to add data capacity heightens. At the short end, using pre-configured design, the supply chain is simplified, and the build time can be as little as 3 months (planning permitting). If the brief is for a custom build, depending on the planning phase, this can take up to 3 years.
Clearly, the more customised the design, the more complex the project becomes, with more ‘players’ involved and a larger requirement for funding across an expanded time frame.
The table below demonstrates a variety of ways in which InvoiceFair can service the capital needs of the key players during each phase of construction.
Data Centre builds are large, complex projects that can be a drain on human and capital resources.
The dramatic global events of the past 2 years like the COVID-19 Pandemic and The War in Ukraine have had a dramatic impact on construction projects in particular. This has resulted in rising cost and scarcity of raw materials and labour, lengthening supplier delivery timelines and time to market, not to mention general overhead increases and now to cap it all off, a relentless escalation in the cost of energy.
Having a dependable funder who understands the sector on your side throughout the project is a critical success factor – now more than ever. From giving you the confidence to tender with certainty that you can fulfil contacts at profitable margins, to managing your staff & supplier costs during the life of the project with access to cash at short notice.
InvoiceFair provide a range of innovative funding solutions for businesses that can release cash at every stage in the credit cycle. So you can get access to funding when you need it most – during the project and not after it is completed!
We do not require personal guarantees from Directors, we don’t implement debtor or geographic concentration limits and funds are released within 24 hours once approved.
Book a free 1 hour consultancy with one of our Qualified Funding Managers, from which we will recommend the most efficient strategy to help you manage funding any data centre projects you may be planning or already in the throes of completing.
Call our Business Development team on 003531 6632662 or email firstname.lastname@example.org
We have a range of innovative working capital solutions that help businesses manage their cashflow more effectively and grow faster.