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Firms cooling IT costs in Iceland

Date: 3rd March 2013

A growing number of European firms are reducing their costs and their carbon footprints by outsourcing their IT to data centres in Iceland, it has been claimed. A study conducted by Pricewaterhouse Coopers found that the running expenditure of a 10,000 sq ft data centre in the Nordic country over a 15 year period is $130 million (approx. £86 million) cheaper than in the UK.

Einar Hansen Tomasson, project manager for Invest in Iceland, a government body which aims to attract overseas investment in the country, points out that the biggest factor in data centre costs in the UK is cooling. However, in Iceland businesses can use free-air cooling systems all year round. In addition to that, Icelandic data centres are often powered by renewable energy sources, such as hydro and geothermal electricity.

Keysource says: Iceland certainly is an attractive proposition with the combination of the green and cheap energy supply with the low ambient temperatures. However, facilities that take advantage of the latest cooling technology can achieve data centre free cooling in the UK for all but a handful of hours each year, so this shouldn’t be the only consideration when choosing the location of a new facility.


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