Iceland makes play for data centre market

 

Iceland is making a play for the growing offshore data centre market, highlighting its cheap electricity and cool climate..

The island generates almost all its power from geothermal and hydroelectric sources, meaning that power costs, which account for the majority of data centre costs, are very low.

In addition, the climate reduces the costs associated with cooling large data centres.

The Invest in Iceland Agency cited a benchmarking study by PricewaterhouseCoopers Belgium which found that Iceland is the most competitive location for the operation of data centres.

"Iceland is a unique low-cost location for large international data centres and can offer clean, renewable energy at a very competitive price," said the organisation.

"The study showed that Iceland offers a lower cost for data centres than the US, the UK and even India.

"Iceland also has the second lowest corporate tax in the OECD at 15 per cent, highly skilled IT labour at competitive prices, and low land and lease costs."

Other industry sectors have already moved operations to Iceland to take advantage of its abundant power resources, particularly aluminium smelting which requires vast amounts of electricity.

Power is so cheap that some towns in Iceland have heated pavements in the winter, but there could be a problem for data centres.

Although the island has 720Gbps cable connections, the government is planning two new submarine cables linking to Denmark in the east, and Greenland and the US in the west.

The cables should be completed by the end of the year and will give a total capacity of 1.9Tbps to 3.8Tbps.

Copyright ©v3.co.uk


Iceland makes play for data centre market
 
 
 
Top Stories
NSW to build its own myGov
Service NSW digital profiles available by September.
 
Australia's leaders agree to end GST-free online goods
Gerry Harvey may finally get his way.
 
What to expect from Abbott's national cyber security strategy
Key policy architect reveals focus of new document.
 
 
Sign up to receive iTnews email bulletins
   FOLLOW US...
Latest Comments
Polls
Should law enforcement be able to buy and use exploits?



   |   View results
Yes
  13%
 
No
  51%
 
Only in special circumstances
  17%
 
Yes, but with more transparency
  19%
TOTAL VOTES: 699

Vote