Tech giant Amazon has cancelled plans for a €300 million artificial intelligence facility in Dublin, citing uncertainty over power supply guarantees needed to support the project. The move is a setback for Ireland’s ambitions to attract high-end tech investments as global competition for AI infrastructure intensifies.
The proposed facility, which would have created over 500 jobs, was not intended to be a data centre, but rather a cutting-edge AI testing and manufacturing hub. Despite securing planning permission and entering discussions with ESB Networks, Amazon ultimately decided the assurances on electricity capacity for the plant were insufficient.
The company had been in talks with the national grid operator about securing a connection from 2027 onwards. However, Amazon is understood to have grown concerned over whether the necessary power infrastructure could be delivered in time.
ESB Networks confirmed that it had engaged in discussions with Amazon to explore the project’s feasibility and was actively working on a connection plan until the decision was made to pull out.
“ESB Networks has been in discussions with Amazon about progressing a feasibility assessment,” the company said in a statement. “We were actively working with them on securing a connection until the decision was taken not to proceed in Dublin.”
Amazon, which has invested approximately €22 billion in Ireland to date, expressed disappointment over the outcome.
“We are disappointed that it did not prove possible to proceed with this project,” an Amazon spokesperson said. “If conditions allow, we do hope to be able to make other high-tech investments elsewhere in Ireland.”
The proposed facility was to be located in an industrial area already home to high electricity-demand operations. But with growing strain on Ireland’s energy grid — driven in part by the rapid expansion of data centres — concerns have been mounting about the country’s ability to support further high-tech developments requiring large power loads.
The cancellation is likely to spark fresh debate about Ireland’s energy capacity and its future as a destination for major international tech investments. It also underscores the broader infrastructure challenges posed by the global AI race, as companies like Amazon look to build next-generation capabilities that rely heavily on stable and scalable power supplies.
While the government has remained committed to supporting digital innovation, the loss of the Amazon project may prompt a reassessment of how Ireland can better meet the demands of future technological development.
