Mega data centre coming, to Paldiski or Jõelähtme

Andres Reimer
, majandusajakirjanik
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Photo: Mihkel Maripuu

«We’ll decide between Paldiski and Muuga Harbour neighbourhood in October as the European Commission settles financing of LNG terminal and Balticconnector [pipeline],» said Data Valley Enterprises chief Jussi Vartiainen. «To produce energy in its power station, the data centre needs more gas than is used by the entire Estonia, Nitrofert chemistry plant included.»

The data centre will be content to buy liquefied natural gas (LNG) though it costs more than the «usual» kind, as its clients are paying not for the energy needed to operate and cool servers, but require unshakeable security that their data will be safe. 

«To guarantee operations, we need at least three different energy sources, two of which are LNG and natural gas,» explained Mr Vartiainen. In the initial stage, a 30,000 square metre storage hall will be built, to cost €170m. All in all, three power stations will be set up, and 200,000 square metres of floor area for servers, costing €600m. The following stages of the data centre may be located in different places, so the investment may spill into both Paldiski and Jõelähtme.

For the server park, Uusküla at the eastern edge of Muuga Harbour fits well, a LNG terminal planned into the vicinity by the international energy trading group Vopak. «Around the harbour area, Jõelähtme Commune is the only one with space enough for such a large project,» said Jõelähtme commune mayor Andres Umboja, after talks with Mr Vartiainen. «The data centre suits our commune well, being a low and closed box, not polluting the environment nor disturbing the neighbours.»

Port of Tallinn deems a data centre a fitting firm that would sit well with the port’s development plans. However, the planned company would be too big for the territory of the port. «The industrial areas of the port are planned for production and we do not have a lot large enough to offer,» noted Port of Tallinn CEO Ain Kaljurand.

Paldiski city government said they had not been in contact with developers of the project. Even so, Alexela Energia – developing a LNG terminal there – was in the know.  

«Regarding the data centre, Paldiski has several advantages. Firstly, we are planning a power station at our terminal to burn tail gas – this would create strong synergy with the data centre. Meanwhile, Paldiski with its small population is Estonia’s second largest city by territory – plenty of space here for a data centre,» said Alexela Energia chief Marti Hääl.

«The planned data centre will boost Estonia’s reputation as an IT-state, and thanks to the broad energy block attached to it, our energy sector will be diversified.»

The data centre, planned as rental area, will in all probability be equipped with Siemens servers, acquired according to needs of tenants. Mr Vartiainen did not wish to reveal with which companies he has talked regarding renting the centre. Even so, he said that hopefully some large TV operating companies, for instance, will transfer their data volumes into Estonia.

The three 250 MW power stations planned in the final phase of the project are intended to be heated by natural gas and the capacity will be used to cool servers; the excess heat will be sold to Tallinn, for instance, for the heating of the city.

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