Financial and Business Services Green Data Centres

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1 Financial and Business Services Green Data Centres

2 We want to help you create a world class green data centre here in Fife 2

3 Introduction Fife has long played an important role within Scotland s Financial and Business Services sector. Adam Smith is one of the region s most famous sons and his economic theories continue to play a role in the global economy. That proud history continues today and several multi-national companies are based in the area. The high quality of life in the area also makes it attractive to dynamic firms and there are numerous successful homegrown companies working within the sector. One of the key attractions to Fife is being located within the Edinburgh City region. The capital has more FTSE 100 headquarters than any other UK city outside of London and is the UK s second largest financial centre. Green data centre Fife is the ideal location for a low carbon data centre due to its cool ambient temperatures, resilient connectivity and investment in renewable energy. Fife Council is committed to developing the local economy by making Fife the easiest place to do business. The focus is on sustainable economic development and Fife Council aims to become Scotland s leading Green Council by working with businesses to encourage the use of renewable energy. 3

4 Why Fife? Renewable Energy Fife has a strong tradition of energy generation which continues in the Renewable Energy Sector with over 400m of private sector investment committed to renewable energy projects. There are projects of national significance in and around Fife including Offshore Wind and Carbon, Capture & Storage. Edinburgh City region financial hub Fife s close proximity to Edinburgh has attracted a number of major companies to the region including Nationwide Building Society and Lloyds Banking Group who between them employ over 3,000 people locally. Over 43,000 people are employed in the Financial and Business Services sector within the Edinburgh City region. These companies are supported by a network of professional advisers such as accountants, lawyers, brokers, actuaries and IT advisers. Companies with a major presence in the region including: Royal Bank of Scotland Lloyds Banking Group Standard Life AEGON UK Scottish Widows Baillie Gifford Tesco Personal Finance State Street Prudential Nationwide Building Society Skilled Workforce Several education institutions including the University of St Andrews, Heriot Watt University, University of Dundee and Edinburgh Napier University produce graduates for the ICT sector. They run undergraduate and postgraduate courses a variety of subjects including Computing and Software Engineering. There are a number of technology companies located in Central Scotland including Oracle, Sun Microsystems and Amazon who are benefiting from the skilled graduates produced every year. 4

5 Cool Climate The average maximum temperature in Fife is lower than both London and Dublin. Natural cooling decreases energy use and increases the data centres green credentials. temp o C Max Temp ( o C) J F M A M J J A S O N D month Source: MET Office Safe Environment Fife, along with the rest of Scotland, is considered to be a safe environment in terms both of climatic and terrorist threats. Fife is located on the East Coast rail line so London can be reached easily if an environmental impact (e.g. a volcanic ash cloud) closed UK airspace. Quality of Life Fife is a world-class visitor destination. It is home to some of the world s finest golf courses, including the Old Course in St Andrews. Fife s coastline also offers excellent walking and wildlife. With a fabulous natural larder and award-winning restaurants and accommodation, including Michelin Star, dining it s easy to see how Fife delivers an exceptional visitor experience, whatever your pleasure. 5

6 Renewable Energy Projects Fife is home to many of Scotland s leading renewable energy projects. There is a strong cluster of pioneering energy companies as well as worldleading academic research through the University of St Andrews. There are a number of projects of national importance including: RWE Innogy are investing 200m in a 50MW biomass plant that they will build and operate. Plans for 5.8GW of Offshore Wind capacity off the coast of Fife. Scottish Power are bidding to retro-fit their 2,400MW Longannet power station with Carbon Capture and Storage (CCS) technology. Diageo are investing 86m in their Cameronbridge distillery and that will include a 5.5MW biomass plant. 6

7 RWE Innogy - 50MW biomass plant, Glenrothes RWE is a leading integrated UK energy company and is part of the RWE Group, one of Europe s leading electricity and gas companies. They serve around 6.7 million customer accounts and produce around 8% of the electricity used in Great Britain. They are currently investing 200m to develop a 50MW biomass plant in partnership with Tullis Russell. Tullis Russell is a Glenrothes based paper company employing 540 people. Their production process requires a large amount of power and as a result they have been affected by increasing energy costs. Faced with having to reduce their energy costs Tullis Russell decided that the best option was a new biomass Combined Heat & Power (CHP) system. As a result they formed a partnership with RWE Innogy to develop a CHP system on their site that will be owned and operated by RWE Innogy. The proposed CHP plant has a rated capacity of 50MWe. It will supply 15MWe, as well as steam, direct to Tullis Russell for their manufacturing process. The remaining 35MWe will be exported to the grid or supplied to other nearby users. The plant is expected to operate 24 hours a day all year round, except for down-time for planned maintenance. During down time Tullis Russell will receive electricity from the national grid. Fife Council have been working closely with both companies for a number of years and planning permission for the site was granted April The Scottish Government awarded a Regional Selective Assistance grant of 8.1m in December Major contracts have been placed with Metso and Aker Solutions to take the project forward. Construction began on site in September 2009, with the power plant due to commissioned by early The plant presents a major opportunity for data centre operators to locate nearby and receive electricity direct from the biomass plant. The use of this green electricity would offer a financial benefit as well as enhanced green credentials. 7

8 Emerging Data Centre Markets The Jones Lang LaSalle Data Centre Advisory Group was instructed to carry out an assessment of Fife as a Data Centre location. The study compared emerging data centre markets with Fife. Emerging markets offer benefits over established locations such as the availability of power, lower staff costs and lower land values. This can make emerging markets attractive to operators who don t need to be close to areas like the City of London. The JLL study highlighted access to green power, low risk of natural disasters and good transport links as some of Fife s strengths. In addition to those benefits the close proximity of Edinburgh financial services cluster offers a large pool of potential customers. Also, land prices are significantly lower in Fife compared to London as well as the centre of Edinburgh. Fife is the only area within the Edinburgh City region to benefit from Regional Selective Assistance (RSA) grants. RSA encourages businesses to undertake investment that will directly result in the creation of employment of jobs in Scotland. Both indigenous and foreign companies can apply with the resulting impact on employment helping to ensure Scotland s economy remains globally competitive. Area Location Economic Hub Grants RSA etc Local Government Support Commitment / Development Agencies Tax Fibre Power Rates Access to backbones Biomass Alternative Power Tidal & Wave Natural risks Access Labour None - e.g. Earthquakes Transport links IT Specific Proximity of London Client base Track record Established DC location Overall rating out of 110 Fife Wales (NGD) NE England (Colbalt) East Anglia (Elean) Iceland (Vern Global) Netherlands (Groningen) Source: JLL, Data Centre Development in Fife Feasibility report (Jan 2011) 8

9 Glenrothes opportunity The study assessed the suitability of five sites in Fife for data centre development. They identified the Queensway industrial estate in Glenrothes as the preferred location. With the main benefit being the potential to draw electricity direct from the RWE Innogy biomass plant. The site is located on the main trunk road allowing easy access to Edinburgh to the south and Dundee to the north. Edinburgh airport is 29 miles by car and can be reached within 30 minutes. Edinburgh airport has direct flights to over 100 domestic and international destinations including: London Frankfurt Amsterdam Paris Madrid New York 9

10 Queensway Industrial Estate, Glenrothes KY7 5QJ Background Queensway Industrial Estate is located in the town of Glenrothes. There are a number of sites that could be occupied by a data centre. These are within a variety of ownerships including Fife Council and Tullis Russell, these site can be seen in figure A. Adjacent activities To the North of the site is paper maker Tullis Russell. They have manufactured paper on the site since 1809 and there a number of buildings of varying age and condition through out their site. To the West there are number of retail uses including Asda and Morrisons supermarkets. To the East is the A92 and the A911 is to the South. On the Queensway Industrial Estate there are a number of different uses including a Stagecoach bus depot, Fife Council offices and a trade supplies outlet. Control of Major Accident Hazards (COMAH) Following an inspection of the site it is unlikely that there is an explosive substance near the site. There are no military, political or commercially sensitive users within the immediate vicinity which heighten the security threat or might prevent access to the site during times of crisis. Flood The site is not located within the local flood plain as indicated by the Scottish Environmental Protection Agency (SEPA). Electromagnetic interference There are no cell-phone masts or overhead electric railway lines near the site. There are no low voltage magnetic field sources evident in the area. Aerial impact Edinburgh Airport is approximately 30km to the South of the site. The site is not on the flight path and there was no aircraft activity in the vicinity at the time of inspection. There is unlikely to be any aerial risk to the site. Network availability The site is currently supplied by BT. The site is also close to the A92 along which several fibre lines run including Virgin Media s. Electricity supply Data Centres locating nearby to the sites will be able to gain a direct supply from RWE via a new 33kva substation. There is also an 11kva sub station located 100m to the west of Queensway Industrial estate. 10

11 Specific sites Within the Queensway industrial estate there are several sites that would be suitable for a data centre. Fife Council has been in discussions with all of the land owners regarding the possibility of locating a data centre within their sites. The establishment of a data centre in the area will be part of the wider development of the area which will become a high quality gateway into the town of Glenrothes. Figure A SITE A 10 acres RWE Innogy Biomass site DUNDEE 24 MILES SITE B 4 acres SITE D 8 acres SITE C 4 acres F I B R E N E T W O R K EDINBURGH AIRPORT 29 MILES Site A Site B Size: Owner: Current use: 10 acres Tullis Russell Vacant land Size: Owner: Current use: 4 acres K Hartwall Disused factory Site C Site D Size: Owner: Current use: 4 acres Fife Council Temporary car park used by RWE during building process Size: Owner: Current use: 8 acres Tullis Russell Disused building used for temporary store by RWE 11

12 The Invest in Fife team is the inward investment arm of Fife Council. We work closely with Scottish Development International to offer a bespoke service to companies seeking to invest in Fife. We have a proven track record of helping investors make their projects happen. Whatever your requirement we have the skills and experience to make your move to Fife as easy as possible. We can help you with: Property searches Detailed local information such as local demographics Familiarisation trips Introductions to other Fife Council departments such as Planning and Transportation Contacts within other organisations To find out more about Data Centres in Fife, contact: Graham Hatton Economic Adviser (Investment) E: graham.hatton@fife.gov.uk T: +44 (0) ext M: +44 (0) Ross MacKenzie Lead Officer (Investment) E: ross.mackenzie@fife.gov.uk T: +44 (0) ext M: +44 (0) Fife Council, Enterprise & Protective Services, Kingdom House, Saltire Centre, Pentland Park, Glenrothes, KY6 2AQ