DUBLIN'S DIGITAL Hub is becoming the victim of its own success, with space becoming a constraint on its development, according the company's annual report yesterday.

The number of companies locating in the Digital Hub has now passed the 100 mark, with the project attracting 18 new firms last year.

"At the end of 2007, the total number of companies in our enterprise cluster stood at 93 and, since then, I am pleased to announce that we have reached the 100-mark," said Philip Flynn, chief executive of the Digital Hub Development Agency.

He said digital media com-panies would be able to withstand the current economic downturn, because of the flexibility and highly-skilled nature of the companies and their employees.

"The rapid growth experienced by the hub is reflective of the phenomenal growth in digital media internationally. Despite the current economic downturn, the digital media sector is in a very healthy state, and looks set to enjoy sustained growth over the coming years."

He said there were currently 750 high-value "knowledge" employees working at the initiative. However, Mr Flynn warned that the success of the Digital Hub was also presenting it with a challenge, with the rapid growth in digital media companies causing problems with providing flexible working space and facilities needed by the companies.

The planning appeals system had also proven an obstacle to the project. Its major property and infrastructure plans were under appeal with An Bord Pleanála for close to a year. The plans were ultimately refused last October.

Mr Flynn highlighted the lack of a definitive timeframe for decision-making by An Bord Pleanála as one of the major hindrances to developments.

The Digital Hub was set up by the Government to create an international centre of excellence focused on digital content and technology enterprises.