Worldwide server farms to be hosted in Iceland

Iceland is putting itself forward to host the world’s data centres as its cold climate would drastically reduce the amount of energy needed to cool down servers.

The global computer industry accounts for about 2% of the world's carbon emissions, which puts it on par with the airline industy, according to a IDC survey. Most of the output is due to server farms and the energy needed to cool them.

Due to the cool climate, data centres would not need to be as air conditioned as they are in warmer countries, which could reduce dependency on power and the amount of carbon dioxide that it emitted into the environment.

Auckland-based hosting provider Iconz said Iceland would be a sustainable and viable hosting option due to its climate and solid power infrastructure, which would be needed to power the servers and disaster recovery systems.

But Iconz chief executive Sean McDonald said New Zealand businesses might not rush to join the queue, as Kiwis prefer local hosting services.

Mr McDonald said Kiwi businesses were concerned about where its data was stored and how different sovereignty laws could restrict access to that information.

“Kiwis are more concerned about where information and data resides than US or European companies. Iconz finds Auckland-based companies want to host in Auckland, while a company is Wellington would want to host more locally.

"It’s a generalisation but Kiwis like having their information close to them, so that designers can go and visit servers.”

But Mr McDonald said that attitude may change in the future. He said outsourcing to Iceland where the cost of maintenance and the effects on the environment could be reduced, could become an appealing attribute to New Zealand businesses.