Interxion spending £22m on third Irish data centre

Interxion will spend €28 million (£22m) on building a third Irish data centre in Dublin.

Interxion said that the expansion, originally announced last year, comes as the company sees increased customer demand for its colocation cloud service.

Called DUB3, the first two phases of the data centre construction will be complete by the fourth quarter of 2016.

But the £22 million figure is just an initial investment for the first two phases. Interxion has not said how much more will be spent on construction after the fourth quarter of this year.

“As Europe’s fastest growing economy, we have seen a significant increase in demand for our services in recent years in Ireland,” said Interxion Ireland managing director Karl Mulhall.

“We are experiencing growth from new clients as well as current clients as more and more look to support their traditional hosting services with cloud services. These companies are looking for connectivity and security from their providers and our reputation and expertise in this area provides us with a unique opportunity for growth. This announcement demonstrates our continued investment in the Irish market.”

Along with the Dublin expansion, Interxion will also be expanding its data centre presence in Amsterdam and Copenhagen. When complete, the three data centres will have a maximum capacity of 11,900 sqm. Interxion will further be expanding its data centre in Frankfurt.

Last month, reports were circulating that Interxion may be the subject of an acquisition by US colo provider Digital Realty.

The acquisition would come after Interxion was jilted by Telecity last year, with Equinix stepping in and acquiring Telecity for £2.35bn.

The consolidation, if it went ahead, would place Interxion in a better position to take on the data centre behemoth that is now a combined Equinix and Telecity, which holds a 10 percent share in the European data centre market.