With continued volcanic activity expected for the coming years, some believe the country’s dream of becoming a major data center location for large companies could be over before they really begin. However, Verne Global, a US wholesale data center company building a large data center on a former NATO base in Keflavik believes the opposite.

While Iceland’s volcanic eruption in the northern part of Iceland has ruined European travel plans, Verne Global has been pointing out how there was minimal disruption to its data center construction operations on the southwest part of the country. “This has allowed us to show how we were prepared, and that the volcano did not affect our operation,” said Tate Cantrell, CTO of Verne Global to Light Reading. “Our facilities are built on an old NATO airbase in the southwest corner of the country, well away from any impact by the volcano. We are committed to showing the risk threshold is low, while the opportunity is great.” Of course, if a massive volcano breaks out in the country where you are trying to build a highly secure data center, you are somewhat obliged to focus on the positives.
 

Crater spewing ash and plumes of grit at the summit of Iceland's Eyjafjallajokul volcano

A study by Price Waterhouse Coopers for the Invest in Iceland Agency last year found that operating a data center in Iceland is less expensive than in places like India, the UK, and the US, thanks mainly to its cheap renewable electricity and easy cooling. “In terms of TCO, even if you factor in the additional costs of transport to Iceland, it's still a win,” Cantrell claimed.

The country's Invest in Iceland Agency are doggedly talking up the advantages of Iceland as a great data center location, despite the volcanic upheaval. “Iceland is the only country in Western Europe that still has extensive, untapped resources of competitively priced hydroelectric power and geothermal energy,” the agency stated on its Web site. “It is the only western country that produces all its electricity from emission-free, sustainable natural resources. Power companies in Iceland operate electricity distribution networks and systems that meet the most stringent international standards for quality services. Long-term contracts for 5–10 MW green power are now available, as well as service level agreements for power delivery services.”

Verne Global's CEO, Jeff Monroe, believes the volcano is a great real-world test for his company’s decision to build their 44-acre data center in hardened underground bunkers in Keflavik. Speaking recently, Monroe said: “In Iceland, as anywhere in the world, there are all kinds of natural disasters to deal with. As it turns out, NATO is pretty good at picking strategic locations. It’s business as usual for us in Iceland, and our position with customers and prospects remains unchanged.” Verne Global may be right and the country, which desperately needs financial investment, could be a great place to locate a data center. But, while Iceland may want to become a leading location for hosting cloud computing it’s a cloud of a different sort that potential customers will be focusing on