Weekly: Despite Higher Price of Power, Estonia Courting Data Centers ({{commentsTotal}})

Google's data storage facility in the United States
Google's data storage facility in the United States Source: (AP/Scanpix)

According to Eesti Ekspress, state-level negotiations are taking place on attracting data centers to Estonia.

The weekly mentions information technology giants such as Google and Microsoft as possible interested parties, but all sides have remained tight-lipped.

A 20,000-square-meter server center, which was mentioned in the article, could be built at the site of the Kehra paper factory, meaning a 150-million-euro investment into the country, the weekly said.

Data centers require a great amount of power to keep servers from overheating, something which Estonia offered cheaper than any other EU nation until market deregulation in January.

Energy-wise, Estonia is still better placed than its Baltic neighbors to attract such investments, but as the recent price spikes have shown, Estonia needs more energy connections to other producers to guarantee cheap and abundant power.

The 650 MW Estlink power cable to Finland, set to enter operation in 2014, should go a long away in solving the energy issue.

Internet connectivity is a weak spot, especially if centers are built away from Tallinn, but Estonia's cool climate and lack of any natural disasters could be advantages.