Pre-tax profits at the data centre arm of Amazon's Irish operation last year declined by 28% to €28.5m.

Amazon Data Services Ireland Ltd recorded the drop in pre-tax profits despite revenues increasing by 4.5% from €2.48bn to €2.59bn in the 12 months to the end of December last.

The company operates several data centres here and an Amazon commissioned report has estimated that Amazon Web Services (AWS) has made a capital spend of €2bn on its network of data centres here over the past decade.

Numbers directly employed by Amazon Data Services Ireland Ltd last year increased from 1,575 to 1,747 and staff costs last year increased from €195.3m to €214.57m.

The company recorded an operating profit of €40.49m after the firm incurred administrative expenses of €2.55bn.

Meanwhile, corporation tax charge for 2020 totalled €12.6m and this followed corporation tax charge of €11.7m for 2019.

The company’s shareholder funds last year increased from €904.76m to €1.44bn.

This followed the company receiving a capital injection of €430m from a connected Amazon company last year.

The profit last year takes account of non-cash depreciation costs of €786.8m.

The profits also takes account of research and development costs of €93m.

Findings from the Indecon report - submitted with a recent data centre application and commissioned by Amazon Web Services (AWS) - states that an analysis on AWS's economic impact in Ireland shows that the company currently supports an estimated 8,700 jobs here.

The report state that this is made up of 3,100 AWS employees, 3,900 working for contractors and a further 1,700 jobs in induced employment from these activities.

The report statesthat AWS’s investment in the Irish economy is estimated to generate economic output effects of over €4.5bn over the next three years.

The report states that between 2011 and 2020, AWS’s operations here has had a cumulative economic output of €7.5bn.

The report also estimates that AWS’s investment in the Irish economy for 2020 alone was expected to produce €1.45bn in additional economic output for the year and will have an annual economic output of €1.5bn for this year, next year and in 2023.

The US giant has concentrated its data centre building programme around the greater Dublin area and the Indecon report states that the AWS investment in data centres in the Dublin City Council area supports 2,378 jobs - a six fold increase since 2011.