In this month’s Insider Ireland’s Business Matters, senior consultant, Phil O’Connor, comments on the tax reliefs available for Irish data centre properties.
Phil says: “The data centre industry is now one of the fastest growing property sectors in Ireland with over €1bn being invested annually, compared to a cumulative total of just €1bn invested up to 2014, according to a report by Host in Ireland.
“A number of factors including our climate, power and data availability and our political stability are considered to make Ireland and Dublin in particular an attractive location and growth is set to continue into the future.”
Phil explains that although the UK has a more established data centre market, Brexit is likely to provide Ireland with a competitive advantage over the UK in attracting international data centre providers to an English speaking European location.
He says: “Considering this high level of investment in data centres, it is more important than ever to highlight the benefits of capital allowances claims which can provide data centre providers with a valuable source of tax reliefs for such developments. For example, with specialist advice it would not be unusual for over 50 per cent of the cost of a new build to be tax deductible.