Northern Ireland still needs to develop the "foundational infrastructure" to attract the billions added to the economy in the south from the roll out of data centres, an SDLP MLA has warned.
Justin McNulty was speaking to Belfast Live after the Stormont Economy Minister Caoimhe Archibald revealed that Invest NI does not offer financial support for data centres.
And while there are around half-a-dozen such centres already in Northern Ireland, with plans to build more in Derry, Ballykelly and Kilroot, this compares to more than 90 in the Republic of Ireland.
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Mr McNulty told Belfast Live the economy in the Republic of Ireland has benefited to the tune of around seven billion euros since 2010 from the proliferation of the centres.
In a market update for quarter four in 2024, the consulting company Bitpower said around €15 Billion has been invested in building data centre facilities in Ireland, with a future investment of €8-10 billion in the pipeline.
On this side of the border, plans have been put forward to build a data centre at the former Shackleton military base in Ballykelly of Co Derry, as well as in the Kilroot area near Carrickfergus in Co Antrim. And the 'Atlantic Hub' plans to build digital infrastructure a few miles outside Derry city have been in the pipeline for years.
But Northern Ireland risks being left behind, Justin McNulty believes, amid what he described as a "lack of ambition" at the Stormont Executive to try and keep up with the scale of the build-up south of the border.
Data centres - sites where large-scale computer systems are housed - are associated with large scale foreign direct investment in Ireland and a relatively small number of highly qualified jobs.
In a market update for quarter four in 2024, the consulting company Bitpower said around €15 Billion has been invested in building data centre facilities in Ireland, with a future investment of €8-10 billion in the pipeline.
But the facilities need robust infrastructure, with demanding electricity requirements often proving a challenge for their construction.
In a written question to the Minister for the Economy, SDLP MLA Justin McNulty asked for "an update on the construction of data centres" and for details of "any efforts [the] Department has made to attract foreign direct investment by providing suitable sites with appropriate infrastructure to accommodate data centres."
The Minister, Dr Caoimhe Archibald, said: "Invest NI does not track the construction status of data centres as it does not offer financial support to this sector given its limited scope for employment creation and high capital costs. It is aware of the planned Atlantic Hub data centre adjacent to Foyle Port and available data centre sites at Kilroot and Ballykelly.
"The North does offer a skilled workforce from over 20 companies that work on the construction, kit out and maintenance of datacentres internationally."
She continued: "Invest NI has engaged with potential data centre investors seeking to identify sites for construction. The location of such sites is complex due to many factors including the energy intensity of the facility and, in certain instances, the need to be with within a specified distance from a similar facility. Any potential investor will need to engage directly with the appropriate utility provider to determine if adequate supplies are available for their demand requirements.
Invest NI recognises the important role that data centres play in modern digital infrastructure, in facilitating increased digitalization of the economy and in supporting technology services and related activities such as cloud computing and artificial intelligence."
The Minister added: "In this context, Invest NI continues to hold discussions with data centre vendors and data centre users about developing the sector in the North."
Mr McNulty, speaking to Belfast Live, said: "The Minister’s response shows a lack of ambition on the part of the Executive, and this lack of ambition risks leaving us lagging behind. In the Republic, where there are 49 established data centres, the Irish Government has laid groundwork that has added an estimated €7billion to the economy since 2010. This ambitious approach will ensure that the Republic has the infrastructure and the capability to reap the dividends of an ever-growing digital economy."
He added: "The Economy Minister has said that the North boasts a skilled workforce from over 20 companies that work on the construction, kit out and maintenance of datacentres internationally. This existing level of skill should be matched with a commitment from government to develop the foundational infrastructure required for us to compete on a global stage, and to empower the growth of our digital economy."
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