Yahoo is looking at potential data center sites in Ireland, to help keep up with the demand for online services in Europe.

According to the Irish Independent, the company could buy an existing facility or build one form the ground up. Plans for European expansion were discussed at the opening of a new office in Dublin on Monday.

Good neighbourhood

Yahoo has had a presence in Dublin for more than a decade. One of data centers it leases in the city currently hosts all of its European website content. Pat Scully, managing director of Yahoo EMEA, said the company is thinking about moving to the area permanently.

If true, Yahoo would join companies like Google, IBM, BT and Microsoft, which opened its first facility in Dublin in 2009. In 2013, Microsoft announced it would invest €170 million to build its fourth server farm in the city.

Amazon maintains seven data centers across Ireland, supporting both its online shopping empire and AWS cloud. And earlier this month, Apple announced plans to spend €1.7 billion on European data centers including a €850 million facility in Athenry, Galway, which will be powered exclusively by renewable energy.

Major Infrastructure and cloud providers already present in Ireland include TeleCity Group, Digital Realty and DataPlex. Equinix is expected to join this list soon.

According to documents submitted to electricity transmission system manager Eirgrid and seen by the Sunday Independent, demand from global businesses is expected to at least triple Ireland’s data center capacity within the next three years.

Ireland is an attractive location for data center projects thanks to its reliable power supply and cool climate. However, the biggest draw has to be the fact it enjoys one of the lowest corporate tax rates in Europe.