What is the European Commission investigating?
Two high-profile Irish construction firms have been caught up in an European Union-wide investigation into alleged anticompetitive practices in the data centre construction industry.
The European Commission confirmed last month it was investigating possible collusion between data centre providers. In particular, it said it was investigating “possible collusion in the form of no-poach agreements”. These are illegal deals in which companies agree not to hire or pursue each other’s employees.
The commission has not named the companies or member states involved in the inquiry but we know EU and Irish Competition and Consumer Protection Commission (CCPC) staff have carried out raids on the Dublin offices of Sisk and Jones Engineering.
Both companies are big players in Europe’s data centre construction industry having worked on projects here and in other countries.
What is the commission saying?
The commission and its relevant national competition authority counterparts (in Ireland’s case the CCPC) have wide-ranging powers to inspect or raid business premises and to take equipment, including computers, laptops and phones that may contain evidence.
[ Jones Engineering named in European Union data centre investigationOpens in new window ]
While not revealing the companies involved in the investigation, the commission said “unannounced inspections are a preliminary investigatory step into suspected anticompetitive practices”.
“The fact that the commission carries out such inspections does not mean that the companies are guilty of anticompetitive behaviour, nor does it prejudge the outcome of the investigation itself,” it added, noting there was no legal deadline to complete inquiries into anticompetitive conduct. Ireland’s CCPC did not comment.
What are the companies saying?
Regulators raided Sisk’s offices at Citywest Business Campus in west Dublin last month. A company spokesman confirmed that the group was “fully co-operating with the European Commission and the CCPC as part of an inspection last month”, but said it would be inappropriate to comment further.
Earlier this year the group said that US-based Vantage Data Centers had appointed it as the main contractor to the first phases of a project in Profile Park, Grange Castle, Co Dublin, on which the multinational is spending €1 billion.
The raid on Jones Engineering’s premises on Pembroke Road in Dublin also took place last month. So far the company, which employs more than 4,000 staff and operates in 19 countries, declined to comment. It is unclear at this stage whether there are more Irish firms involved in the inquiry.
What else?
Rapid technological innovation including the advance of artificial intelligence is expected to drive demand for data centres globally.
The global data centre market is expected to be valued at about $300 billion (€288 billion) in 2024, growing to $483 billion by 2029, according to TMT Finance. However, the high energy requirements associated with these centres has made the roll-out of further projects problematic and in many cases at odds with government climate targets.
Earlier this month, Ireland’s Climate Change Performance Index called for a moratorium on data centres, which it forecast could account for 30 per cent of energy use here by 2030.
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