Ireland has established itself as a global hub for data centres, attracting substantial investment from both international and domestic players. While the spotlight often falls on the large players like Amazon, Google, and Digital Realty, the Irish data centre ecosystem encompasses a wide range of companies involved in the construction, value chain, and supply chain. Chris Brown and Morgan Mullooly of our Strategy team explore the flurry of acquisitions which occurred over the past year, highlighting the sector's growth and potential.
The data centre industry in Europe is expected to grow at a compound annual growth rate of over 20% in the next decade. Although data centre activity in Ireland has experienced a temporary slowdown due to energy infrastructure constraints, Irish companies are well-positioned to capitalise on emerging growth opportunities in other European markets, such as Germany, Spain, and Scandinavia. These countries are witnessing increased demand for data centre services, and Irish firms with expertise in delivering cutting-edge solutions can leverage their experience to expand their presence in these markets.
Beyond the well-known developers, operators, and real estate speculators, there is a vibrant ecosystem of players contributing to the growth of the data centre industry in Ireland. This ecosystem includes companies specialising in engineering, cooling technology, power distribution systems, construction software solutions, and more. These firms play a crucial role in the development and operation of data centres, and their expertise has been highly sought after by investors.
Private equity firms have shown keen interest in Ireland's data centre industry, recognising the sector's long-term growth prospects. Blackstone's acquisition of a 50.7% stake in Winthrop Technologies, a specialist engineering company, for over €800 million, and Starwood Capital's €800 million investment in Echelon Data Centres, a leading developer of built-to-suit hyperscale data centres, are notable examples of significant private equity deals in the sector.
International trade buyers have also been active in the Irish data centre ecosystem. US-based Ecolab acquired HT Materials Science (HTMS), a Dublin-based cooling technology group, while German company Arvato Group acquired ATC Computer Transport & Logistics, an Irish firm providing specialist services to hyperscale data centre operators. These acquisitions demonstrate the global appeal of Irish data centre companies and their expertise.
Irish companies have been both acquirers and targets in the data centre ecosystem. MTM Engineering Group, an Irish specialist electrical contractor, acquired TA Ronan, a UK-based company providing cable installation and termination services for data centres. H&MV Engineering, another Irish-founded company, acquired Skanstec, an engineering firm specialising in the energy and telecommunications sectors.
As the industry continues to expand, there are numerous pockets of M&A opportunity for companies operating within the ecosystem.
| Date | Target Company | Target Country | Target Data Centre Exposure | Buyer Company | Buyer Country | Buyer Type | Deal Value | Percent Acquired | Description |
|---|---|---|---|---|---|---|---|---|---|
| Jan | Skanstec | IE | Significant exposure to the sector | H&MV Engineering | GB/IE | Trade | ND | 100% | Skanstec is an engineering company specialising in the energy and telecommunications sectors. |
| Feb | Echelon Data Centres | IE | Sector-specialist | Starwood Capital | US | PE | €800m | 30.95% | Echelon Data Centres is a leading developer of built-to-suit hyperscale data centres. |
| Mar | Ethos Engineering | IE | Sector-specialist | Exponent | GB | PE | ND | 100% | Ethos Engineering specialises in mechanical electrical consultancy and sustainable data centre building design. |
| Mar | Irish Wood Communications | IE | Significant exposure to the sector | Alcadon Group | SE | Trade | ND | 100% | Irish Wood Communications distributes products for network infrastructure serving data centres and other industries. |
| Apr | Winthrop Technologies | IE | Sector-specialist | Blackstone | US | PE | €800m+ | 50.7% | Winthrop Technologies is a specialist engineering company focused on the data centre sector. |
| May | TA Ronan | GB | Sector-specialist | MTM Engineering Group | IE | Trade | ND | 100% | TA Ronan provides cable installation and termination services for data centres. MTM is a specialist electrical contractor that provides medium voltage (MV) and low voltage (LV) cable installation with a focus on data centres. |
| Jun | Davenham Switchgear | IE | Significant exposure to the sector | Legrand | FR | Trade | ND | 100% | Davenham Switchgear provides low-voltage power distribution systems for data centres and other sectors. |
| Jul | Dornan Engineering Group | IE | Significant exposure to the sector | Turner Construction Company | US | Trade | ND | 100% | Dornan is a specialist mechanical, electrical, instrumentation, and commissioning engineering contractor serving data centres and pharmaceuticals. |
| Jul | Ardmac | IE | Significant exposure to the sector | Purever Industries | IN | Trade | ND | 100% | Ardmac specialises in fit-out for data centres, including modular solutions and hot and cold aisle solutions. |
| Aug | Air Movement Supplies Ltd | IE | Significant exposure to the sector | Elta Group | GB | Trade | ND | 100% | Air Movement Supplies manufactures and supplies ventilation products with specific uses in data centres. |
| Aug | EIDA | IE | Sector-specialist | Renatus | IE | PE | ND | ND | EIDA provides specialist construction software solutions for data centres and other sectors. |
| Sep | H&MV Engineering | GB/IE | Sector-specialist | LGT Capital Partners | LI | PE | ND | Minority stake | H&MV is a specialist high-voltage electrical contracting and consulting company serving data centres and renewable energy sectors. |
| Nov | ATC Computer Transport & Logistics | IE | Sector-specialist | Arvato Group | DE | Trade | ND | 100% | ATC provides specialist transport, logistics and technical services to hyperscale data centre operators. |
| Nov | TES Group | NI | Sector-specialist | Foresight Group | GB | PE | ND | Minority stake | TES Group manufactures and distributes power distribution and monitoring systems, focusing on data centres and water infrastructure. |
| Dec | HT Materials Science (HTMS) | IE | Significant exposure to the sector | Ecolab | US | Trade | ND | ND | HTMS is a Dublin-based cooling technology group serving data centres and other industries. |
At KPMG Ireland, we understand the critical role data centres play in today’s digital economy. Our Data Centre Ecosystem Hub is dedicated to providing comprehensive advisory services that span the entire data centre lifecycle – from Construction Advisory through to Transaction Services.
