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The Ikea Concept as applied to IT provision

The Ikea concept is based on offering a wide range of well designed, functional furnishing products at prices so low that as many people as possible will be able to afford them. Odd that you would even think to apply this Scandinavian success story to providing IT services but ‘googling’ via the Nordic region could well turn out better for the environment and business.

The Datacentre Practice at BroadGroup, the leading analyst firm says: “The rising costs of energy and the unrelenting demand for IT will severely test the operational viability of UK datacentres by 2010." In BroadGroup’s latest report, UK Data Centres – the carrier neutral market – it says London datacentres are fast approaching full utilisation but they remain the most active and promising in Europe. However will London run out of space and power?

Enough power, keeping things cool without using masses of energy and staying green i.e. having a zero carbon footprint, represent the greatest challenges faced by datacenters today. So, why is IT by Scandinavia any better?

Power - The UK and other western developed nations has in recent times been at the mercy of Russian energy pipelines, cutting supplies to Ukraine and Belarus for political reasons. Norway has given its pledge on 'reliable energy supply' and is well- placed to provide continental Europe with secure energy supplies.
Green – Due to its elevation Norway is one of the leading producers of hydroelectricity in the world. 99% of Norway’s total electricity generation stems from hydropower – giving datacenters a zero-carbon footprint.

Climate – with low temperatures for 6 months of a year (January 07 saw temperatures of -11 degrees) Scandinavian datacentres take advantage of a technique known as free-cooling. The datacentre screens are opened to the outside and the ambient air is used to keep high-density servers cool. Without the needs for chillers or advanced eco-technology solutions, energy consumption is drastically reduced. Maintaining the datacenter environment is said to account for 70% total electricity output of a datacentre – an average UK datacentre energy bill runs at a staggering 5.3million euros [BroadGroup].

Sustainable, stable market conditions - All Scandinavian nations right now show: strong growth, controlled inflation and low interest rates. "The Nordic economies are cruising at optimal speed," commented strategists of the investment bank Alfred Berg, the Nordic subsidy of the ABN AMRO.

Looking at Scandinavian sites to house our IT services may not seem as far fetched as first thought. Look beyond London and ask if Scandinavia could actually provide IT so low that it’s affordable to all business, plus it may turn out its better for the environment. Flat-pack IT, it may even be on the cards as we speak?

For further discussions on this story we have access to

Keith Breed, BroadGroup author of the report

Byrne Murphy, Digiplex (the leading Scandinavian Data Centre)

Please contact Rebecca Jones / VP Communications / 020 8964 0260

About DigiPlex
Digiplex, the pan-European internet hotel operator, was set up in late 1999 during the internet boom with ambitions to rollout co-location facilities in 22 cities across Europe. In 2002 during the technology market crash, DigiPlex’s Oslo site was retained and continued operations through a credible customer base with a robust and stable economy.
Currently occupying 2000 metres, DigiPlex plans to be billing out 4,200 metres by the end of Q2, 2007.
Visit their website for further information: http://www.digiplex.no/Default.aspx?ID=23







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