EU Probes Alleged Anticompetitive Practices in Data Center Construction in Ireland

Two high-profile Irish construction companies, Sisk and Jones Engineering, are under investigation by the European Commission (EC) for potential anticompetitive behavior in the data center construction industry.

The EC confirmed in May 2023 that it was looking into possible collusion amongst data center providers. The focus of the investigation is alleged “no-poach agreements,” illegal arrangements where companies agree not to recruit or pursue each other’s employees. While the EC hasn’t disclosed the specific names of the companies or countries involved, it was revealed that raids were conducted on the Dublin offices of Sisk and Jones Engineering by both EC and Irish Competition and Consumer Protection Commission (CCPC) officials.

What is the Commission Saying?

The EC and its national competition authority counterparts conduct wide-ranging investigations and have the power to inspect business premises and seize relevant equipment, including computers, laptops, and phones.

While the EC maintains that unannounced inspections are just a preliminary step, emphasizing that the companies involved are not automatically guilty of any wrongdoing, they also highlight that such investigations can take time to complete.

What Are the Companies Saying?

Sisk, whose headquarters were searched by authorities in Citywest Business Campus, Dublin, confirmed their full cooperation with both the EC and the CCPC. While declining to offer further comment, they did mention their involvement in a large-scale data center project with US-based Vantage Data Centers in Dublin.

Jones Engineering, whose offices on Pembroke Road in Dublin were also raided, has yet to issue a public statement regarding the investigation.

The Impact on Ireland’s Data Center Sector

Rapid technological advancements, particularly in the field of artificial intelligence, are driving a surge in global demand for data centers. The data center market is projected to reach a staggering $483 billion by 2029, according to TMT Finance. However, the energy-intensive nature of these facilities poses challenges, often conflicting with government climate targets.

Earlier this month, Ireland’s Climate Change Performance Index called for a moratorium on new data center developments. They predict that data centers could consume 30% of Ireland’s energy by 2030, raising serious concerns about the country’s commitment to sustainability.

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