Cheap energy entices data centers to Iceland

Iceland is an ideal location for data centers thanks to its cheap renewable energy, according to a study by Price Waterhouse Coopers.

Data centers may soon be springing up all over Iceland after a recent report by Price Waterhouse Coopers which rated Iceland as having the cheapest running costs for data storage centers compared to the US, UK and India.

The report highlighted the abundance of hydroelectric and geothermal energy in Iceland which is renewable, clean and cheap. Data centers which are built in Iceland would therefore not contribute to global warming nor require carbon credits.

Half the energy consumption of normal data centers is used for cooling hardware. Data centers in Iceland would save a considerable amount of this energy by harnessing the natural colder climate – thus reducing energy bills even further. The report also identified the years of built-up experience of Icelandic telecommunications and software companies with international businesses.

Iceland had, however, a lower score on the number of secure telecom connections to the US and Europe. The Icelandic government is currently rectifying this with the installation of a new telecommunications cable in 2008. The study also noted that many people perceived Iceland as having a high risk of natural disasters though in reality the risk is higher in the US, UK and India.

The report was produced by Price Waterhouse Coopers for the Invest in Iceland Agency in association with Teymi, Hitaveita Sudurnesja, Orkuveita Reykjavikur, Farice, Siminn, and Landsvirkjun.

More information can be found at the Invest in Iceland Agency website.