Iceland Attracts Data Center Market

• By theWHIR.com , April 01, 2008

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April 1, 2008 -- (WEB HOST INDUSTRY REVIEW) -- Iceland, a country perhaps best known for its glaciers, attractive blondes and Bjork, has recently been trying to put itself on the map as a competitive location for the operation of data centers.

The Invest in Iceland Agency (invest.is) recently cited a PricewaterhouseCoopers Belgium study that found that Iceland has become one of the most attractive options, if not the most attractive, for the growing offshore data center market, primarily due to its cool climate, which cost-effectively and naturally keeps facilities cool, as well as its low electricity costs.

The organization says that only half of the country's energy potential, which primarily comes from geothermal and hydroelectric sources, has been tapped and it is the only Western European country that produces all its electricity from emission-free and sustainable natural resources, a factor that may be attractive to a large number of hosting providers and data center operators, especially from Europe and North America where green hosting and energy efficient technologies have been in high demand.

"Iceland is a unique low-cost location for large international data centers and can offer clean, renewable energy at a very competitive price," writes the Agency on its website. "Iceland offers lower cost for data centers than USA, UK and even India. Iceland also has the lowest corporate tax in the OECD at 15 percent, highly skilled IT labor at competitive prices and low land and lease cost."

The organization also says that Iceland is a particularly "excellent location for a secondary data center specializing in storage and disaster recovery for foreign companies."

Although the organization touts many benefits to building a data center in Iceland, according to Wired (wired.com), some businesses may find the 720 Gbps cable connection a little under par. However, local government-funded firm Farice is planning two new submarine cables for the end of the year linking to Greenland and the US in the west, and Denmark in the east, that will give a total capacity of 1.9Tbps to 3.8Tbps.

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