EU and national authorities are investigating Irish companies including building group Sisk for possible competition law breaches in data centre construction, it has emerged.
The European Commission recently revealed that it had begun investigating possible anticompetitive practices in data centre construction in the bloc, alongside local antitrust law authorities. The inquiry is focused on deals between companies not to poach each other’s staff.
Commission officials and staff from the Irish Competition and Consumer Protection Commission (CCPC) recently raided the premises of building group, Sisk in Citywest, Dublin and at least one other business in the capital as part of this probe.
A Sisk spokesman confirmed on Friday that the group was “fully co-operating with the European Commission and the Competition and Consumer Protection Commission as part of an inspection last month”, but said it would be inappropriate to comment further.
Sisk is well known in Ireland and has operations in other EU countries.
Earlier this year the group said that US-based Vantage Data Centers had appointed it as the main contractor to the first phases of a project in Profile Park, Grange Castle, Co Dublin, on which the multinational is spending €1 billion. Sisk has also built data centres in Sweden.
The European Commission did not comment on which Irish companies it raided, nor on where they took place, but noted that it had confirmed that it was investigating data centre construction.
“Unannounced inspections are a preliminary investigatory step into suspected anticompetitive practices,” a statement said.
“The fact that the commission carries out such inspections does not mean that the companies are guilty of anticompetitive behaviour, nor does it prejudge the outcome of the investigation itself,” it added.
“The commission respects the rights of defence, in particular the right of companies to be heard in antitrust proceedings.”
Ireland’s CCPC did not comment.
Last month the commission announced that it and the relevant national competition authorities were “carrying out unannounced inspections” of companies active in data centre construction and had sought information from them.
The commission suspects businesses in that industry could have violated EU competition by colluding on “no-poach” agreements – illegal deals in which companies agree not to hire or pursue each other’s employees.
There is high demand in the Republic and elsewhere in Europe for qualified professionals in construction, particularly in specialised fields such as data centre building.
There is no deadline to complete its inquiries, according to the commission. The duration depends on the complexity of the case, companies’ co-operation and their exercise of their rights to a defence.
European and Irish competition law enforcers have wide-ranging powers to inspect or raid business premises and to take equipment, including computers, laptops and phones that may contain evidence.
The commission offers leniency to companies involved in cartels, including granting immunity or significant reductions in fines in return for reporting suspected offences and co-operating with investigations.
The EU and the Republic have laws banning businesses from engaging in a wide range of anticompetitive practices. Conviction can result in fines and other financial penalties.
Larger Irish construction companies with a track record in building for the technology and pharmaceutical industries have moved into working on data centres as multinationals have begun locating these facilities here.
However, data centres are under increasing fire for the amounts of electricity they use. Many parties that contested the recent general election pledged to stall or halt this activity.
The State’s Commission for the Regulation of Utilities is due to publish the findings of a review of data centre building here shortly.
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