Amazon Scraps Dublin Industrial Project Due to Power Supply Issues

Amazon has abandoned plans to build a €300M industrial facility in Dublin due to power supply issues. The proposed plant would have employed around 500 people. Despite the setback, Amazon continues to expand its operations in Ireland, with plans for a new data center in the country.

Amazon.com Inc. has canceled plans for a €300 million industrial facility in Dublin, citing insurmountable challenges in securing a reliable power supply. The decision underscores broader strains on Ireland’s electricity infrastructure, particularly amidst surging demand from tech giants. The project, expected to create up to 500 jobs, was a logistics or fulfillment center, not a data center [1].

The cancellation was first reported by The Irish Times, which highlighted Amazon’s inability to obtain sufficient electricity from the national grid. Sources familiar with the matter told the publication that negotiations with EirGrid, Ireland’s state-owned electricity transmission operator, broke down over capacity issues, despite the project’s non-data-center nature [1].

Ireland’s electricity network has been under immense pressure, with data centers alone accounting for about 18% of the country’s total power consumption last year, per industry analyses. This surge is driven by hyperscale operators like Amazon, Google, and Microsoft, which have flocked to Ireland for its favorable tax regime and skilled workforce. However, the grid’s limitations—exacerbated by delays in renewable energy projects and outdated infrastructure—have led to moratoriums on new connections in certain areas, including Dublin [1].

The scrapping of the plant represents a significant blow to local employment prospects, with the loss of 500 potential roles in construction, operations, and logistics. The facility was poised to bolster Amazon’s e-commerce dominance in Europe, handling increased demand for rapid delivery services. Economists warn that such cancellations could deter future investments, potentially costing Ireland billions in foreign capital [1].

Amazon continues to expand its operations in Ireland, with plans for a new data center in the country. The company has invested €22 billion in Ireland in the past and remains committed to the Irish market [2]. However, the pullback from the industrial facility could redirect resources to less constrained markets like Germany or the Netherlands, prompting a strategic shift in expansion strategies [1].

This incident amplifies calls for urgent reforms, with industry experts predicting a potential strategic shift towards on-site renewables or microgrids to bypass national limitations. The episode serves as a cautionary tale for nations balancing economic growth with energy sustainability [1].

References:
[1] https://www.webpronews.com/amazon-cancels-e300m-dublin-logistics-hub-over-power-grid-issues/
[2] https://www.rte.ie/news/business/2025/0725/1525346-amazon-drops-500m-irish-investment/