The Factors That Determine the Choice of Investments in Data Centers

Technology companies wanting to strengthen their presence in as many countries as possible by forming a network of data centers on each continent looking for the right countries to develop their data centers. 

Within this framework they have a specific range of factors to consider advising a country to invest in it. These factors are:

1. The degree of development of telecommunications networks.

2. The rental price of fiber optics.

3. The cost of energy corresponding to 30% of the operating costs of a data center.

4. The political stability that you see in an investment target country.

5. The average annual temperature. In countries with a much higher average temperature, the need for refrigeration of machinery and, by extension, energy consumption is much greater. According to these elements, colder countries appear to have a comparative advantage over warmer regions.

6. The level of cyber-security.

7. Labour costs.

8. The ease of finding highly qualified human resources.

Investment in Data Centers
Photo by the website www.mononews.gr

The EU, and always based on its digital policy and the green transition of its economy, has stipulated that data centers on its territory should become energy neutral by 2030.

This decision is because data centers account for 6%-9% of global energy consumption and more than 2% of all carbon dioxide emissions.

Within this framework, the EU requires the installation of photovoltaic systems to significantly reduce energy costs by making investments of this type greener and ecological.

The company Savills (https://en.savills-aguirrenewman.es/research_articles/) (Savills Tech Cities) which acts as a consulting firm for digital technology companies, has compiled an indicator showing which EU member country is most attractive for setting up a data center.

The Netherlands, Germany, the United Kingdom and France account for 74% of investments in data centres and as a result have a high degree of cloud penetration.

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The Liberal Globe is an independent online magazine that provides carefully selected varieties of stories. Our authoritative insight opinions, analyses, researches are reflected in the sections which are both thematic and geographical. We do not attach ourselves to any political party. Our political agenda is liberal in the classical sense. We continue to advocate bold policies in favour of individual freedoms, even if that means we must oppose the will and the majority view, even if these positions that we express may be unpleasant and unbearable for the majority.

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