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      Europe’s security landscape is shifting, and Ireland’s role as a digital infrastructure and data processing hub is now closely observed internationally.

      While neutrality remains part of national identity, resilience, not isolation, is now an appropriate narrative. In a digital economy, safeguarding infrastructure and economic interests demands innovation, cooperation, and proactive engagement.

      Christopher Brown

      Partner, Head of Strategy

      KPMG in Ireland


      Resilience, not isolation

      Ireland’s neutrality has long been a cornerstone of national identity. Yet Ireland’s position on Europe’s western edge, and its role as a global technology hub, make it central to European resilience.

      • 16% of EU territorial waters sit under Irish jurisdiction. [1]
      • ~75% of transatlantic data cables pass through Irish waters. [2]
      • Ireland hosts global cloud and AI infrastructure that underpins Europe’s digital economy, with Dublin being the second largest data centre hub in Europe after London. [3]

      The collective view of industry and policy makers is that Ireland is seen as a key node in international technology, communications and security.


      An all-island perspective

      Ireland’s approach must not ignore our broader all-island context and the partnerships that shape it. The island contains different security traditions, but with common goals. What matters for Ireland is practical cooperation that supports our neighbours and protects shared strategic infrastructure, including subsea cables, energy connectors, and ports.

      As Ireland’s infrastructure is increasingly viewed as strategic, our choices should bolster collective resilience across the island and with UK and EU partners, while maintaining Ireland’s values and legal commitments.

      This all‑island context also includes significant defence‑related industrial capacity in Northern Ireland, including advanced manufacturing activity that supplies systems currently used in European security operations. This demonstrates how the island’s wider industrial ecosystem plays a strategic role in European security. Recognising this interconnected landscape is essential when considering Ireland’s contribution to collective resilience.


      A signal to act from Europe

      EU initiatives, from the Critical Entities Resilience Directive to Military Mobility, expect each Member State to contribute to collective security. For Ireland, this is not about militarisation. It is about safeguarding the common good by strengthening resilience, protecting essential services, and ensuring continuity in crisis.

      Ireland’s recent agreement with France to support the procurement and deployment of new radar and drone systems demonstrates that the State is willing to collaborate with European partners when it strengthens national and collective resilience.

      Ireland’s 2026 EU Presidency heightens this urgency. Europe needs every node in its network to be resilient, and Ireland can lead by example through civilian-first innovation and practical cooperation.

      In December 2025, the Government announced a landmark €1.7 billion defence investment plan – a 55% increase – covering new radar, counter‑drone systems, aircraft, sonar and naval upgrades. This represents the most significant shift in Ireland’s security posture in decades and signals a clear commitment to strengthening national and European resilience.


      Civilian-first innovation as a strategic enabler of resilience

      Ireland does not host large traditional defence manufacturers, but it does host world‑class civilian technology companies with dual-use potential. Many are already deployed globally in both civilian and military contexts. The priority is responsible use of technologies, deploying the appropriate guardrails within policy, ensuring innovation serves the common good and does not enable misuse.

      Irish innovators are already delivering capabilities aligned with EU resilience priorities:


      • AI-enabled satellites for maritime monitoring

        Artificial‑intelligence satellite imaging to detect and track vessels, including those operating without transponders, improving maritime awareness.

      • Immersive training platforms for emergency response

        Data‑driven virtual‑reality environments that turn operational telemetry into actionable insights for emergency preparedness and crisis response.

      • Precision navigation for aerospace and logistics

        Radiation‑tolerant inertial navigation technologies integrated into aerospace platforms to support precise positioning and guidance systems.

      • Autonomous drones for fisheries and border surveillance

        Long‑endurance, autonomous aerial systems for fisheries monitoring, long‑distance operations, and remote patrol missions.

      • Subsea imaging for energy pipelines and data cables

        Ultra‑high‑definition subsea imaging and laser‑based measurements used to inspect underwater pipelines and data cables significantly faster than conventional methods.


      These capabilities scale across Ireland’s industrial base and talent pipeline, strengthening resilience while supporting jobs.


      Economic context: strategic assets & risks

      Ireland’s prosperity and strategic infrastructure amplify expectations and, in a contested environment, make us a tempting target for bad actors. Hosting critical data flows, cloud capacity, and energy interconnectors means disruption here can cascade across Europe.

      If neutrality once aligned with limited means and our infrastructure being of limited strategic threat to global economies, today’s fiscal strength and strategic assets change the equation. The question is not how to match EU averages, but how to protect assets that bad actors may choose to undermine, demonstrating shared responsibility for resilience.



      These charts illustrate a central challenge: Ireland sits at the high end of European income but the low end of defence and resilience spending. This imbalance creates both reputational risk and practical exposure. Closing this resilience investment gap is essential to protect people, infrastructure, and Ireland’s role in Europe.


      Defence and job creation: a resilience-first opportunity

      Ireland’s defence investment has now been increased to €1.7 billion under the new 2026–2030 Defence Sectoral National Development Plan, a 55% uplift that exceeds previous "Level of Ambition 2" projections and significantly expands roles across defence, technology and infrastructure.

      Level of Ambition 2 refers to the Defence Forces development plan agreed by Government in 2022, setting out the minimum staffing, equipment and capability improvements needed to meet Ireland’s core security requirements.

      The wider impact is larger when defence and resilience are viewed together and connected to existing strengths:


      • Semiconductors

        20,000 jobs today, projected 34,500 by 2040. Chips power secure communications, AI, and advanced sensors.

      • Space technology

        116 Irish companies have engaged with or secured contracts from the European Space Agency (ESA) since the launch of the National Space Strategy for Enterprise in 2019. Photonics, Earth observation, and secure connectivity underpin resilience.

      • Robotics and drones

        Expanding roles across energy, construction, and border surveillance. Commercial systems can protect offshore infrastructure and supply chains.


      Aligning these sectors with resilience priorities transforms national innovation into industrial strengths, attracting high-quality investment, and reinforces Ireland’s reputation for responsible, future-facing leadership.


      Strategic role in Europe

      Ireland’s infrastructure and data flows make it a critical node in Europe’s security architecture. Government and industry have already begun to implement capabilities that reinforce Europe-wide resilience:


      • Cybersecurity for transatlantic cables

        Bilateral maritime security cooperation with the UK and participation in UN-mandated, NATO-led Partnership for Peace simulations.

      • Space-based surveillance for maritime security

        Irish space and optics firms delivering AI-enabled Earth observation systems that enhance maritime situation awareness.

      • Autonomous systems for offshore monitoring

        Domestic robotics and marine‑technology companies deploying autonomous drones and subsea imaging systems for fisheries protection, energy infrastructure, and cable monitoring.

      • Government investment in infrastructure protection

        Ireland has already taken delivery of part of its new Airbus C295 maritime patrol fleet, is advancing procurement of a national radar system with French support, has ordered underwater and towed‑array sonar systems to enhance subsea protection, and is accelerating deployment of counter‑drone technology ahead of the 2026 EU Presidency.
         

        Leveraging EU programmes such as Horizon Europe and the European Defence Fund can amplify Ireland’s impact while preserving national values.


      Risks and challenges

      • Fragmented policy or unclear pathways for dual-use innovation and manufacturing may deter responsible investors.
      • Infrastructure vulnerabilities in subsea cables, energy pipelines, and maritime surveillance demand coordinated action.
      • Cultural caution toward overt defence activity requires careful framing around resilience, innovation, and the common good.

      Dual‑use technologies have legitimate civilian applications but can also serve security or defence purposes, and therefore operate under EU export‑control rules.


      Conclusion

      Resilience is Ireland’s strategic imperative in a digital age. The question is no longer whether Ireland should act, but how.

      • How does Ireland reconcile neutrality with its role as Europe’s digital backbone?
      • How can civilian‑first technologies enhance security without compromising values?
      • How will the public sector, and private sector investment required be financed?

      Ireland has a once in a lifetime opportunity to safeguard European sovereignty, create high-value jobs, and develop strategic technologies that keep Ireland at the forefront of global technologies. Making this happen will require significant public and private investment.

      If you would like to explore how resilience, defence investment or dual‑use innovation could impact your organisation or sector, please contact our team below.


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