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Declaration of Intent for server farm signed

April 18, 2008
During the meeting, it was revealed that Greenstone and LV had signed a Declaration of Intent for the purchase of electricity for the server farm, and that Greenstone and Farice had signed a Declaration of Intent for data transmission.
The declarations signed by Greenstone ehf. and the above entities for a site, electricity and data transmission will lead to an investment of ISK 10bn by Greenstone if the planned project is realised. It is anticipated that the operation of the first stage of the server farm will begin in 2010-11.
Development and new jobs in Thorlákshöfn
The Declaration of Intent signed by Ölfus and Greenstone means that the local authorities will allocate a 50,000 m2 site to Greenstone in a planned industrial area in Thorlákshöfn. The proposals call for the construction a building of up to 40,000 m2 in two stages. The first phase will be taken into use in 2010. It is anticipated that 25-30 people will work for the company initially, and the project will lead to the creation of 25-30 secondary jobs for technicians, tradesmen, engineers, security personnel and service providers linked  to the farm’s overseas clients.
Powerful connections for data transmission
The Declaration of Intent signed by Greenstone and Farice involves an agreement for data transmission between Iceland and the European mainland. With the laying of a new submarine cable later this year, Danice, the connection for data transmission to and from Europe will be sufficient for the operation of the server farm.
Power requirement of up to 50 MW
On 2 April 2008, representatives of Greenstone ehf. and LV met in Holland to sign a Declaration of Intent for the sale of power to server farms. The principal provisions of the declaration state that the companies intend to finalise an agreement for the sale of 50 MW of electricity to be allocated to two farms, each using approximately 25 MW. Delivery of electricity is expected to begin in early 2010. The declaration also states that the parties are interested in further business with respect to additional farms in the future, if negotiations are successful. LV made reservations with respect to energy acquirement and permits for the construction of new power plants, as in all the company’s contracts with potential electricity purchasers. Greenstone made reservations with respect to the solution of data transmission to and from Iceland and with respect to the agreement with Landsnet for electricity transmission. The completion of the power contract is planned for 1 July 2008 at the latest.

Plans for more server farms
Greenstone is also examining the possibility of constructing two or more additional high-tech server farms in Iceland over the next 3-5 years, bringing an estimated additional investment of up to ISK 50bn. Greenstone reiterates that in order for such plans to come to fruition, a new fibre-optic connection to America will be necessary.

There are several obvious advantages to developing server farms in Iceland, particularly location, environmentally-friendly energy and climate. Furthermore, good access to cooling-water is of great importance. The operation of server farms in Iceland is estimated to be at least 20% more cost effective than in the main competing countries.

Greenstone ehf. is owned by TCN in Holland, GEO in the United States and Amicus Capital Invest in Iceland. The founders of Greenstone and associated parties have expert knowledge and experience of the operation of server farms overseas, in London, New York, Amsterdam, Emshaven, Rotterdam and Gröningen

TCN is an international property company with headquarters in Holland. TCN owns and operates a large number of server farms all over the world. The company plans to grow substantially in this field over the next 5-10 years.

GEO is a US investment and consultancy company in the field of operating and constructing server farms. GEO has been involved in the construction, ownership and operation of several of the 10 largest server farms in the world, and has extensive experience and knowledge of laying fibre-optic networks internationally.

Amicus Capital Invest is an Icelandic consultancy company that has provided services to foreign and Icelandic investors outside Iceland over the past few years.

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