Facebook’s decision to build a data center in Luleå, Sweden, has directly created nearly 1,000 new jobs and generated local economic impact that amounts to hundreds of millions of dollars, according to a recently completed study by the Boston Consulting Group, which the social network company hired to assess its impact on the local economy.
There’s a very strong and clear move from the days where everybody had their equipment on site, had their own comms or server room and operated their own IT on-site. That equipment is gradually being moved off site and into data centres, whether that’s because the customer is putting their own equipment into data centres, or into cloud environments.
The cloud has to live somewhere - it’s just a posh name for remote hosting - which is another argument. It’s been around for at least 25 years. If you take the concept of remote hosting, that was actually around in the 1960s, but it was called time sharing.
The thing that’s made the difference is fibre optics - the fact that if you did this in 1976, the amount of data you could transfer on a telephone line was very small and so limited. These days there’s fibre so there’s all sorts of things you couldn’t do back then that you can do today.
London-based Virtus Data Centres has added a £50mn investment boost from Deutsche Bank to its funding portfolio. Though the additional capital is intended to ‘drive business growth’, it is not yet clear whether it will be used to develop or augment existing infrastructure in the company’s Enfield and Hayes locations, to construct new facilities or to grow Virtus through acquisitions.