Bombproof buildings, biometric security passes and financial trading at the speed of light: welcome to data centres, a booming global industry that is hosting more of the world's money, entertainment and energy use than ever.
In the foothills of the Italian Alps, one of Europe’s newest data hubs is a prime example of how these boxy buildings have become cornerstones of the economy. Since June, Euronext NV has aided a quarter of European equities trading in the former textile town of Ponte San Pietro.
Within the building’s 800km network of cables, banks such as Goldman Sachs Group and JP Morgan Chase shoot trading data at one another’s servers within 20 microseconds, or millionths of a second.
“It used to be a big noisy room with people buying and selling. Now it’s a big noisy room with servers,” Manuel Bento, Euronext’s chief operating officer, said in an interview, referring to the changes in trading culture. “Speed matters.”
The data centre is now handling average volumes of €13 billion ($13.7 billion) each day — roughly twice that of Deutsche Boerse AG or London Stock Exchange Group Plc, said Stephane Boujnah, Euronext’s chief executive.
These are trades that, before Brexit, took place in an equally imposing warehouse a few kilometres east of London. It took a little more than a year to shift the operation to Italy.
The new site, about an hour from Milan, is part of an industry that is accelerating as firms digitise their services and daily life shifts online.
Every time someone reads an email, streams a movie or reads a tweet, the chances are they passed through a building like this. Every time something happens on “the cloud”, it is happening in someone’s data centre.
Investments in the industry globally more than doubled in 2021 to $59.5 billion, research by the law firm DLA Piper reported, driven by the growth of firms such as Facebook parent Meta Platforms, Google’s Alphabet and Microsoft.
Investment this year had already surged to $21.3 billion by June 7, doubling the record set last year. This demand is also firing up businesses that supply equipment to data centres, including chipmaker Nvidia and network specialist Cisco Systems.
“There’s a massive explosion of content and all that has to be resided and stored somewhere,” said Dalmar Sheikh, director and global head of data centre operations at infrastructure investor Actis. The firm has data centres in Nigeria and China and is building more in South Korea and across Africa.
For finance companies, the attraction of using data centres can lie in faster trading times — particularly if they can rent a spot in a data centre close to its market counterparties, known as colocation.
Firms that need huge computing power, such as payment processors or Bitcoin miners, can get greater flexibility from a data centre than their own hardware.
To be sure, trading in data centres is not for everyone: automated, high-speed algorithms can distort the market, while fees for data and colocation services can be hugely expensive, said Chris Jackson, head of equities for EMEA at Liquidnet Europe, which operates dark pools where firms can trade more slowly and discreetly.
''We would argue that it has created a hostile market for legitimate long-term institutional investors,” said Mr Jackson.
Still, even for tasks that tolerate slower processing times, data centres are offering modern kit that, unlike firms’ own legacy servers running ancient code, allows them to outsource worries about maintenance and security.
But, like trades on screens, these matters have to be managed somewhere in the real world. Growing concerns about energy usage in data centres have halted some projects in the Netherlands, where the government imposed a nine-month block on permits for sites larger than 10 hectares.
Centralised data centres are, in theory, safer against cyber-security incidents, since they are protected by one specialist company, rather than by each business trying to run its own servers.
However, “I wouldn’t use the word ‘safe.’ Nothing in this world is safe”, said Beatriz Sanz Saiz, EY global consulting data and analytics leader.
Euronext moved its hub to Italy partly due to Brexit, and relocated from Basildon, a town outside of London.
“Post-Brexit we wanted all data centres in the EU to have their core infrastructure in Europe,” said chief executive Mr Boujnah. “We didn’t know what the direction of travel was in the UK and didn’t want to take any regulatory risks.”
It previously rented space in Basildon from Intercontinental Exchange, which owns the New York Stock Exchange. It is a largely windowless building in a maze of industrial parks near bathroom showrooms, tractor dealerships and small-time law firms.
ICE’s data centre is difficult to miss at 30,000 square metres, or four times the size of football pitch. Inside, banks trade fixed-income derivatives such as gilts and Euribor futures, with hundreds of fibre optic cables running west to London, south via the English channel to Europe, and under the Atlantic to New York.
“People who want to be in Basildon want premium access to the trading engine and to the data that is published locally, and there is nothing that provides faster access than colocation,” said Nicolas Bonnet, director of global connectivity product at ICE.
At Telehouse, a short distance from the O2 arena in the Docklands area of east London, vibration wire around the site alerts 24/7 security staff to intruders.
Workers use biometric fingerprint recognition to enter key rooms, parts of the building are bombproof and the firm works closely with police and counter-terrorism officials.
The goal is to protect the data of clients including Amazon and Microsoft, whose servers are identified by code, rather than by their names, to lower the risk of data breaches.
“We are designed to operate and keep services running in many, many different failure scenarios,” said Paul Lewis, senior operations director at Telehouse Europe. “We don’t want people coming in who shouldn’t be here and there are a lot of checks and balances.”
Clients rent a space similar to a gym locker that is connected via yellow cables. The activity in all these lockers can send the centre's temperature soaring towards 40°C, requiring Telehouse to run air cooling.
There are enough backup generators and fuel supplies to keep the building running through a 36-hour power cut.
Telehouse already operates five data centres in London and is planning to knock down a disused hotel next year to build a sixth, which could cost hundreds of millions of pounds.
One of the biggest concerns about the industry is its environmental impact. These buildings use 1 per cent of global energy in 2021, according to the International Energy Agency, and in Ireland, this has more than tripled to 14 per cent since 2015.
In Denmark, it is projected to triple to 7 per cent by 2025.
In Norway, data centre operator Green Mountain cools one of its sites with water drawn from a nearby 150-metre-deep fjord. It is also planning to take the newly heated water and pump it into a lobster farm being built on its site, said marketing manager Mette Gulbrandsen.
Euronext says it may have another solution. The firm generates power from solar panels and hydroelectricity on the Brembo River that flows down from the Bergamo Alps.
“Data centres are really the major problem when it comes to carbon footprint reduction in the digital economy,” said Mr Boujnah. “Our carbon footprint is neutral.”
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UPI facts
More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions
Company%20profile
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Real estate tokenisation project
Dubai launched the pilot phase of its real estate tokenisation project last month.
The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.
Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.
THE SPECS
BMW X7 xDrive 50i
Engine: 4.4-litre V8
Transmission: Eight-speed Steptronic transmission
Power: 462hp
Torque: 650Nm
Price: Dh600,000
Afghanistan Premier League - at a glance
Venue: Sharjah Cricket Stadium
Fixtures:
Tue, Oct 16, 8pm: Kandahar Knights v Kabul Zwanan; Wed, Oct 17, 4pm: Balkh Legends v Nangarhar Leopards; 8pm: Kandahar Knights v Paktia Panthers; Thu, Oct 18, 4pm: Balkh Legends v Kandahar Knights; 8pm: Kabul Zwanan v Paktia Panthers; Fri, Oct 19, 8pm: First semi-final; Sat, Oct 20, 8pm: Second semi-final; Sun, Oct 21, 8pm: final
Table:
1. Balkh Legends 6 5 1 10
2. Paktia Panthers 6 4 2 8
3. Kabul Zwanan 6 3 3 6
4. Nagarhar Leopards 7 2 5 4
5. Kandahar Knights 5 1 4 2
Zayed Sustainability Prize
What the law says
Micro-retirement is not a recognised concept or employment status under Federal Decree Law No. 33 of 2021 on the Regulation of Labour Relations (as amended) (UAE Labour Law). As such, it reflects a voluntary work-life balance practice, rather than a recognised legal employment category, according to Dilini Loku, senior associate for law firm Gateley Middle East.
“Some companies may offer formal sabbatical policies or career break programmes; however, beyond such arrangements, there is no automatic right or statutory entitlement to extended breaks,” she explains.
“Any leave taken beyond statutory entitlements, such as annual leave, is typically regarded as unpaid leave in accordance with Article 33 of the UAE Labour Law. While employees may legally take unpaid leave, such requests are subject to the employer’s discretion and require approval.”
If an employee resigns to pursue micro-retirement, the employment contract is terminated, and the employer is under no legal obligation to rehire the employee in the future unless specific contractual agreements are in place (such as return-to-work arrangements), which are generally uncommon, Ms Loku adds.
THE SPECS
Engine: 6.75-litre twin-turbocharged V12 petrol engine
Power: 420kW
Torque: 780Nm
Transmission: 8-speed automatic
Price: From Dh1,350,000
On sale: Available for preorder now
Killing of Qassem Suleimani
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COMPANY PROFILE
Name: Mamo Year it started: 2019 Founders: Imad Gharazeddine, Asim Janjua Based: Dubai, UAE Number of employees: 28 Sector: Financial services Investment: $9.5m Funding stage: Pre-Series A Investors: Global Ventures, GFC, 4DX Ventures, AlRajhi Partners, Olive Tree Capital, and prominent Silicon Valley investors. COMPANY%20PROFILE
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COMPANY PROFILE
Name: Xpanceo
Started: 2018
Founders: Roman Axelrod, Valentyn Volkov
Based: Dubai, UAE
Industry: Smart contact lenses, augmented/virtual reality
Funding: $40 million
Investor: Opportunity Venture (Asia)
Specs
Engine: Duel electric motors
Power: 659hp
Torque: 1075Nm
On sale: Available for pre-order now
Price: On request
The specs
AT4 Ultimate, as tested
Engine: 6.2-litre V8
Power: 420hp
Torque: 623Nm
Transmission: 10-speed automatic
Price: From Dh330,800 (Elevation: Dh236,400; AT4: Dh286,800; Denali: Dh345,800)
On sale: Now
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Killing of Qassem Suleimani
THE SPECS
Engine: 3.5-litre V6
Transmission: six-speed manual
Power: 325bhp
Torque: 370Nm
Speed: 0-100km/h 3.9 seconds
Price: Dh230,000
On sale: now
How to apply for a drone permit
- Individuals must register on UAE Drone app or website using their UAE Pass
- Add all their personal details, including name, nationality, passport number, Emiratis ID, email and phone number
- Upload the training certificate from a centre accredited by the GCAA
- Submit their request
What are the regulations?
- Fly it within visual line of sight
- Never over populated areas
- Ensure maximum flying height of 400 feet (122 metres) above ground level is not crossed
- Users must avoid flying over restricted areas listed on the UAE Drone app
- Only fly the drone during the day, and never at night
- Should have a live feed of the drone flight
- Drones must weigh 5 kg or less
Results
5.30pm: Maiden (TB) Dh82,500 (Turf) 1,400m; Winner: Mcmanaman, Sam Hitchcock (jockey), Doug Watson (trainer)
6.05pm: Handicap (TB) Dh87,500 (T) 1,400m; Winner: Bawaasil, Sam Hitchcott, Doug Watson
6.40pm: Handicap (TB) Dh105,000 (Dirt) 1,400m; Winner: Bochart, Fabrice Veron, Satish Seemar
7.15pm: Handicap (TB) Dh105,000 (T) 1,200m; Winner: Mutaraffa, Antonio Fresu, Musabah Al Muhairi
7.50pm: Longines Stakes – Conditions (TB) Dh120,00 (D) 1,900m; Winner: Rare Ninja, Royston Ffrench, Salem bin Ghadayer
8.25pm: Zabeel Trophy – Rated Conditions (TB) Dh120,000 (T) 1,600m; Winner: Alfareeq, Antonio Fresu, Musabah Al Muhairi
9pm: Handicap (TB) Dh105,000 (T) 2,410m; Winner: Good Tidings, Antonio Fresu, Musabah Al Muhairi
9.35pm: Handicap (TB) Dh92,500 (T) 2,000m; Winner: Zorion, Abdul Aziz Al Balushi, Helal Al Alawi
How to watch Ireland v Pakistan in UAE
When: The one-off Test starts on Friday, May 11
What time: Each day’s play is scheduled to start at 2pm UAE time.
TV: The match will be broadcast on OSN Sports Cricket HD. Subscribers to the channel can also stream the action live on OSN Play.
Sole survivors
- Cecelia Crocker was on board Northwest Airlines Flight 255 in 1987 when it crashed in Detroit, killing 154 people, including her parents and brother. The plane had hit a light pole on take off
- George Lamson Jr, from Minnesota, was on a Galaxy Airlines flight that crashed in Reno in 1985, killing 68 people. His entire seat was launched out of the plane
- Bahia Bakari, then 12, survived when a Yemenia Airways flight crashed near the Comoros in 2009, killing 152. She was found clinging to wreckage after floating in the ocean for 13 hours.
- Jim Polehinke was the co-pilot and sole survivor of a 2006 Comair flight that crashed in Lexington, Kentucky, killing 49.
Company%20Profile
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