Apple has announced that they will abandon their plans to build a $1 billion-dollar data centre in Athenry, Ireland, due to the inability to get it through planning. The project, which was first announced in February 2015 and would have brought considerable income and jobs to Ireland, had been through years of planning turmoil, before the firm finally decided to move their investment to Denmark. If ever there was a reason to address the faults of Ireland’s planning process, then this should be it. The decision is significant, as it not only signals lost opportunities in the short-term, but also highlights the long-standing problems with Ireland’s current planning law.
Officials must learn their lesson from this failure and act by reforming the outdated system. Especially, at a time where Ireland has the chance to attract international firms looking for a new foothold in Europe, following Brexit.
Interest from global businesses in Ireland, and Dublin in particular, is creating continued demand for commercial space. However, current planning regulation is causing a major barrier to the progress of new developments. And because planning issues are not exclusively attached to large, new build, projects, many small and medium business are also being failed by limited and outdated stock, as are those looking to live in and around Dublin’s city centre.
Bottlenecks are preventing the creation of modern and sustainable commercial spaces for foreign and domestic firms alike. At the same time, there is a huge demand and supply imbalance for good quality housing for the growing workforce, with residential schemes not coming through fast enough. Unfortunately, the result is that many firms and individuals are being priced out of the limited stock available.
We are seeing it ourselves in Dublin with the refurbishments we have been undertaking of our Georgian portfolio. The planning process can be painful and unnecessarily burdensome and I can understand why some people don’t have the patience or inclination to push through it.
Had Apple been successful in their proposals, Athenry would have been injected with the type of economic stimulation required throughout much of Ireland, including 150 new jobs for County Galway and an increase in aggregate demand to the area. It would also have sent a clear message to Europe and the rest of the world; Ireland welcomes foreign investment.
Ultimately, the Irish economy will survive this loss. And as Apple has indicated, other opportunities will arise. But, put simply, this issue could and should have been avoided. Planning laws are due a desperate upgrade and only when they begin to positively impact the development of commercial and residential developments, will Ireland truly make progress.