Monday 24 October 2016

Comment: Data centre boom to intensify with data ruling

Published 16/10/2015 | 02:30

Amazon's decision to re-invest millions in more data centre capacity could be a sign of things to come.

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Last week's European Court Of Justice ruling on data privacy has put a rocket under multinational web firms' plans to diversify data centre operations across the globe.

Put simply, the ruling puts more urgency on companies to keep as much of its customers' data within the EU, on pain of regulatory sanctions if it is transferred to the US. While Amazon executives might say that its new Dublin investment is unrelated to the ECJ ruling, other multinational web firms have raised the prospect of new data centre construction in Europe as a short term priority. Ireland is in a good position here, with web giants repeatedly expressing a preference in being regulated here rather than other European countries.

Amazon will also be spurred to invest by the recently announced Dell-EMC merger, which will provide sterner competition for its web hosting business.

Expect a new wave of such investments.

Irish Independent

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