Apple to spend $1.9 bn on two European data centers

US technology giant Apple Inc plans to spend €1.7 billion ($1.93 billion) in two high-tech data centers in Ireland and Denmark, in the company's biggest project in the European continent, Apple said in a statement.

The two data centers, each covering an area of 166,000 sq.m, will be located in Athenry on the western coast of Ireland and in Viborg in central Jutland in western Denmark.

The facilities, which are expected to become operational by 2017, will be powered entirely by clean, renewable energy sourced from local partners.

The data centers will provide online services such as iTunes, App Store, iMessage and Siri for customers across Europe.

Apple's CEO Tim Cook said, ''This significant new investment represents Apple's biggest project in Europe to date. We're thrilled to be expanding our operations, creating hundreds of local jobs and introducing some of our most advanced green building designs yet.''

Apple currently provides direct employment to 18,300 people across 19 European countries and supports around 672,000 jobs in the continent, majority of which are related to the development of iOS applications.

According to industry observers, building data centers in Europe will help Apple to invest some of its foreign cash, create local goodwill and enhance data privacy.
Welcoming the announcement, the Irish prime minister Enda Kenny said, "It is a very significant investment in the west of Ireland and is fantastic news for Athenry with significant knock-on benefits for the region."

The demand for data centers, which house computers and telecom equipment to securely store vast amount of data, is on the rise as more and more customers use their smartphones and tablets to access data over the internet.

About a fortnight ago, leading British data center provider Telecity Group Plc agreed to merge its operations with Netherlands-based Interxion Holding NV for $2.2 billion to create a dominant European data center player (See: Telecity acquires rival Interxion for $2.2 bn for 'cloud' expansion). 

According to research data, global internet traffic is forecast to triple over the next five years, with mobile component rising 11-fold between 2013 and 2018.

Stressing on the significance of tackling climate change, Apple's vice president of environmental initiatives Lisa Jackson said: ''We're excited to spur green industry growth in Ireland and Denmark and develop energy systems that take advantage of their strong wind resources.''

In its push toward green energy, earlier this month Apple announced a $850-million investment in a Californian solar farm to power Apple's headquarters and stores. (See: Apple announces $850-mn deal for solar facility with First Solar)