WEALTH May 25, 2026 0 Comments

Why South West Ireland Is the Untapped Goldmine Poised to Skyrocket the Nation’s Economy—And What Investors Need to Know Now

Ever wonder what it takes for a thriving region to not just keep pace, but leapfrog into a powerhouse of economic and sustainable success? Well, KPMG Ireland has just spotlighted the South West of Ireland as standing at such a crossroads—a “pivotal phase” where urgent action in housing, transport, and energy infrastructure isn’t just needed; it’s absolutely critical. The new “South West 2040: Advancing Ireland’s Economic Future” report throws down a gauntlet, showcasing Cork and the greater South West as uniquely poised to fuel Ireland’s economic engine and renewable energy ambitions over the next decade and a half. With a robust industrial backbone, top-tier research hubs, and a population swelling in both youthful vigor and aging wisdom, the region could either soar or stumble depending on the investments made today. It’s a classic case of foresight—will the South West seize its moment to lead in both growth and climate resilience, or risk watching opportunity slip through its fingers? Dive into the details and what’s at stake for one of Ireland’s most vital regions. LEARN MORE

KPMG Ireland has warned that the South West faces a “pivotal phase” in its development, with urgent investment needed in housing, transport and energy infrastructure if the region is to fulfil its economic and low-carbon potential by 2040.

The findings are contained in the new “South West 2040: Advancing Ireland’s Economic Future” report, which argues that Cork and the wider South West are uniquely positioned to drive Ireland’s economic growth and renewable energy ambitions over the next 15 years.

The region, which includes Cork and Kerry, is home to more than 740,000 people and currently contributes over 20% of national GDP.

According to KPMG, the South West benefits from a strong industrial base, globally connected businesses, major education and research institutions, and a central role in Ireland’s energy transition.

However, the report highlights mounting demographic and infrastructure pressures that could threaten future competitiveness if not addressed quickly.

By 2040, the number of people aged over 65 in the region is expected to increase by almost 80,000, creating additional strain on healthcare, housing and labour supply.

At the same time, the 25-43 age cohort is projected to grow by almost 63% compared with 2022 levels, strengthening the region’s talent pool and economic prospects.

KPMG said global trends around investment, climate change and population growth are already reshaping regional economies and warned that the South West must “continue to be proactive” in attracting investment.

The report identifies transport, utilities, housing delivery and energy infrastructure as key priorities to ensure the region remains attractive for businesses and workers.

Energy is expected to play a central role in the South West’s future growth.

Cork currently supplies more than a quarter of Ireland’s national energy demand and contains around 20% of the country’s installed electricity generation capacity through assets including the Whitegate refinery and gas-fired power stations at Aghada and Whitegate.

County Cork also accounts for approximately 12% of Ireland’s installed wind generation capacity, while Kerry produces around 13% of national wind energy output.

In May 2025, Kerry generated 82GWh of zero-carbon renewable electricity, the highest of any county in the State.

Barrie O’Connell, partner at KPMG, said the region was well positioned to lead the country’s renewable energy expansion.

“The evidence is clear that the South West is primed to lead Ireland’s renewable energy generation development,” he said.

“Unlocking this potential requires an integrated approach. The availability of 388 hectares of zoned Special Policy Area in the Cork Harbour Whitegate area can enable delivery of major energy-related developments, while extended port infrastructure will create greater offshore wind developments.”

He added that electricity grid investment would also be critical in attracting future data centre investment into the region.

The report also calls for faster infrastructure delivery and clearer governance structures to reduce delays in major projects.

Recommendations include accelerating timelines for projects such as Luas Cork, improving water and wastewater capacity, and developing a coordinated plan for Cork Docklands.

KPMG also warned that the South West is among the regions most exposed to climate change risks, with up to 21,800 households in Cork and Kerry potentially vulnerable to flooding under future climate scenarios.

Mike Hayes, KPMG’s global head of renewable energy, climate and decarbonisation, said climate resilience planning must become a core requirement for future investment decisions.

“Pre-emptive resilience assessment and funding are critical priorities for the South West as it looks to 2040,” he said.

“Mobilising private capital at scale will be essential to deliver adaptation and mitigation.”