Estonia, EU – Baltic States, Good for Business, Internet, Investments

Head of MCF Group Estonia Kert Evert said that the cost of building a data center of such a scale is roughly 25 mln euros in its first stage.

"The total investment in the project reaches over 100 mln euros. The financial effect of the project on Estonia, however, will be several times that. A data center such as this will create many new opportunities for the IT and, more broadly, the telecommunications sector in Estonia. That, in turn, strengthens our position in the region and grants new opportunities in international competition," Evert was quoted in a press release as saying.

"It is not sustainable for businesses and institutions to keep their IT systems in out-of-date equipment rooms and at the moment, there is no center in Estonia for such a purpose and on such a scale. The new data center has national importance in ensuring that our own e-state, start ups, businesses as well as global enterprises feel safe on the Estonian market," Evert said.

Evert noted that when constructing a data center, the location has a crucial role, and MCF has been looking for the right site for two years.

"It is important to consider a safe distance from fuel terminals, gas stations, waste disposal sites, quarries, airports and reservoirs. Security requirements have been paid too little attention in Estonia so far," he said.

The MCF data center will be constructed in several stages. The design work was done in cooperation with Finnish experts. The center has a modular structure, which means that it is possible to build private equipment rooms for each customer, depending on their needs. In addition, smaller containerized data centers, which are gaining popularity, will be provided for clients.

The construction of the first six-megawatt building and the infrastructure required is intended to begin in the first half of 2019 and finish by the end of the year. The development plan allows for sufficient room for expanding the complex. The center's initial infrastructure enables to develop the compound to a total power of over 20 megawatts, which can be increased, if needed. 

The data center project was initiated in 2015 by Finnish and Estonian private investors. Contributors to the project who have helped it reach the current stage include Enterprise Estonia, Estonian Ministry of Economic Affairs and Communications and a dozen institutions from the public and private sector. Negotiations with the center's anchor clients are currently in the works and preliminary contracts are being draw up.

The floor space of the facilities to be constructed on the border of Saue and Harku rural municipalities totals 12,000-35,000 square meters, and the data center is estimated to house up to 1,000 rack cabinets with storage capacity for 40,000 servers. The center's planned power capacity is over 20 megawatt-hours powered by two independent 100 kilowatt electrical connections and a diesel generator with a fuel reserve of 100,000 liters.