Data Game: Tech Giants Should Go To Iceland

Iceland Gets In On The Data Game

ICELAND might be famous for rumbling volcanoes, spouting geysers and its Viking heritage, but the big island with a tiny population is hoping to make a new name for itself as a hub for data centres.

Due to the growth of the internet and the way we use our computers and phones, tech companies need more places to keep the data we create.

Iceland reckons it has the perfect conditions to give data customers the best bang for their buck.

On a trip to the geographically isolated country to film Sky News Swipe’s Festive Special, I got to go inside one of the world’s most extreme data centres – a converted NATO base.

Companies from all over the world rent space at Verne Global in Keflavik.
The site is packed with huge computers, processing billions of calculations every second – it is what “the cloud” we all talk about actually looks like.

But servers need to be kept cool – which can get very pricey, and that gives chilly Iceland an advantage over warmer countries – they simply use openings in the walls to let the outside air in.

The country also has heat and water in abundance.

Almost 100% of its electricity comes from renewable sources – geothermal and hydroelectric energy – which means it can drive its data centres in an eco-friendly and cheaper way.

“Some of our customers are able to come to Iceland and operate their data centres at greater than 80% energy cost reduction because the cooling is free throughout the year and the power is incredibly low cost,” Jorge Balcells, Verne Global’s director of technical services, told me.

The country still needs a boost from some big Silicon Valley names though, who have so far opted to put their data in other Nordic countries.

Facebook has one in Sweden, Google in Finland and Apple is building one in Denmark.

Staff at the University of Iceland are optimistic, and told me big corporations are often cautious about choosing where to keep their servers.

Ebba Thora Hvannberg, a professor of computer science, said: “The data centre industry here in Iceland is very young.

“I think it’s just a matter of time when large companies realise the benefits of storing data here because of the low energy prices and the renewable energy.”

But when I spoke to technology expert and founder of Startup Iceland, Bala Kamallakharan, he said it would take more than just cheap, green energy to convince the likes of Google and Yahoo to bring data here.

“Iceland has only three cables that connect Iceland to the rest of the world. I think we need a lot more than three,” he explained.

“These cables give a sense of security. If you think about the reason why we have two kidneys and two lungs is because our body has a way to recover if one of them fails.” news.sky.com

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