A PRIME LOCATION FOR DATA CENTERS

Transcription

1 A PRIME LOCATION FOR DATA CENTERS

2 : IN THE CENTER OF EUROPE Accessibility Lithuania Facts and figures Size: 25,212 mi 2 ATLANTIC OCEAN IRELAND GREAT BRITAIN NORTH ATLANTIC OCEAN NORTH SEA NETHERLANDS Amsterdam NORWAY miles GERMANY Frankfurt SWEDEN Stockholm 950 miles BALTIC SEA 520 miles FINLAND ESTONIA 560 miles UKRAINE Moscow in the Center of Europe Frequency Major destinations (flights per week ) London 19 Kaunas Airport (22 miles away ) Vilnius Airport (53 miles away ) Frankfurt Easy to do business 21st freest economy in the World 1 17th out of 189 world economies for ease of doing business 2 5 Population: Capital: Official language: Major destinations Dominant foreign Moscow languages: London Membership: EU, NATO, WTO 23 Politics: Parliamentary democracy Paris since independence 15 in 1990 Copenhagen Currency: Frankfurt Helsinki Real GDP growth: 2013 Warsaw million Vilnius Lithuanian Frequency (flights per week ) English, Russian, German, Polish24 Lithuanian Litas 14(LTL) Pegged to EUR 3.45 LTL / 1 EUR % 3.7% FRANCE ITALY BLACK SEA 3 Brussels Inflation: % Stockholm % 11 Amsterdam 7 SPAIN Vienna Berlin 7 6 MEDITERRANIAN SEA European Union Source 1: Heritage Foundation, Economic Freedom Index, 2014 (evaluates 10 components of economic freedom, assigning a grade in each using a scale from 0 to 100, where 100 represents the maximum freedom. The 10 economic freedoms are grouped into 4 broad categories: Rule of Law (property rights, freedom from corruption); Limited Government (fiscal freedom, government spending); Regulatory Efficiency (business freedom, labor freedom, monetary freedom); and Open Markets (trade freedom, investment freedom, financial freedom) Source 2: World Bank Doing Business Report, 2014 (The index ranks economies from 1 to 183 calculating the average of the percentile rankings of starting a business, dealing with construction permits, registering property, getting credit, protecting investors, paying taxes, trading across borders, enforcing contracts, resolving insolvency and getting electricity) Source 3: Statistics Lithuania, 2013 Sources: Kaunas and Vilnius airports

3 Kruonis Technology Park SIAULIAI KLAIPEDA Data center park containing the most reliable power supply 185 acre ready-to-build site next to the 900 MW Kruonis Hydro Pumped Storage Power Plant (HPSPP) Highest level of physical security, dark fiber on-site, and redundant cooling solutions PANEVEZYS BALTIC SEA KAUNAS 64 miles VILNIUS KRUONIS TECHNOLOGY PARK

4 KRUONIS TECHNOLOGY PARK Kaunas LAGOON STREVA Overview 185 acres ready-to-build greenfield site Outstanding electricity grid for critical facilities - access to 100 MW and more of power load 185 acres KRUONIS TECHNOLOGY PARK KRUONIS HPSPP Special Economic Zone status, which provides corporate tax incentives Site is ready for construction all documentation (conditions and special requirements) is already issued Site is adjacent to highly secured national strategic asset site Kruonis HPSPP Lithuania has low exposure to natural hazards, i.e. earthquakes, storms, floods, droughts, sea level rise KRUONIS HPSPP RESERVOIR 330 kv single 330 kv double 110 kv double 330 kv double (Link to Poland, in 2015) Access to cooling water Probable maximum flood

5 Summary Stable Power Supply Resilient Power Infrastructure on Site Renewable Energy Fiber Network Nordic Climate and Cooling Solutions Secure Location Competitive Talent Pool Leading ICT Infrastructure Financial Incentives Accesibility

6 STABLE POWER SUPPLY FINLAND LINK TO FINLAND 1,000 MW SWEDEN INTERLINK BRELL Belarus Russia Estonia Latvia Lithuania ring Reliable and Diversified Electricity Network BALTIC SEA ESTONIA Resilient infrastructure Lithuania has not experienced any simultaneous power outage BRELL (Belarus-Russia-Estonia-Latvia-Lithuania) ring prevents power transmission failures Estlink connection to Finland (350 MW) was expanded to 1,000 MW at the beginning of 2014 LINK TO SWEDEN Under construction (700 MW), operational in 2016 Electricity connections under construction: link to Sweden (700 MW, operational in 2016) and Poland (500 MW, operational in 2015) Sufficient and expanding generation capacities Current total generation capacity is 4,304 MW, peak demand is 1,654 MW. Lithuania imports most of its demand electricity to take advantage of spot pricing LINK TO Under construction (500MW), operational in 2015 UKRAINE Competitive internal market Lithuania has joined Nord Pool Spot the largest market for electricity in the world 20 independent electricity suppliers operate on the local market Hydro/Nuclear/Thermal power plants

7 RESILIENT POWER INFRASTRUCTURE ON SITE KLAIPEDA PANEVEZYS VISAGINAS Resilient Power Infrastructure on Site BALTIC SEA Site is at the core of Lithuania s power grid Imediate access to 10 MW of power load already installed at the site, which is expandable to 100 MW and more KAUNAS VILNIUS Five redundant 330 kv lines and six 110 kv lines available at the site Strategic location for critical facilities KRUONIS TECHNOLOGY PARK Next to Kruonis HPSPP (900 MW capacity) 12 miles away from Kaunas Hydroelectric Power Plant (101 MW capacity) Wind park Prospective wind park Heat power plant Hydro power plant Prospective nuclear power plant 330 kv tranformer substation 330 kv prospective substation 330 kv switchyard 330 kv prospective switchyard 110 kv transformer substation 330 kv line 440 kv prospective line 330 kv prospective line 330 kv prospective cable 110 kv line

8 RENEWABLE ENERGY Renewable Energy Certified Green Energy Certfied green energy for Data Centers Lithuania provides the opportunity to purchase electricity from Kaunas Hydro Power Plant with Renewable Energy Guarantees of Origin. Possibility to invest in ready-to-build wind parks close to the Kruonis Technology Park Developing green energy share in Lithuania Lithuania is targeting a 23% renewable energy share by 2020 (currently ~22%) By 2020 Lithuania aims to have 500 MW of installed wind energy capacity, at least 355 MW of biomass, 141 MW of hydro energy and more than10 MW of solar

9 FIBER NETWORK Fiber Network on Site TEO sweden DLC sweden Telia Latvija, TeliaSonera Construction will be finished in 2015 DLC TEO Skaidula Lithuanian Railways Lattelecom, Latvenergo Lattelecom Lattelecom, Latvian Railways, Latvian RTC, Latvenergo Latvian Railways Links with European fiber optic hubs (Finland, Germany, Russia and others) can be easily established via partner networks BALTIC SEA KLAIPEDA PANEVEZYS Dark fiber providers on site: DLC on site TEO 9.4 miles away Skaidula 9.4 miles away Lithuanian Railways 15 miles away RAIN 2.4 miles away (On site, in 2015) IRELAND Madrid SPAIN GREAT BRITAIN London FRANCE NORTH SEA NETHERLANDS Paris Amsterdam MEDITERRANIAN SEA NORWAY Stockholm Copenhagen 2015 BALTIC SEA GERMANY Frankfurt Milan ITALY Berlin SWEDEN Rome Prague 2016 FINLAND Helsinki Warsaw Tallinn ESTONIA Riga Minsk Sankt Peterburg Kiev UKRAINE Moscow BLACK SEA DLC TEO Lithuanian Railways Skaidula DLC TEO Skaidula Lithuanian Railways Alternative connection through RAIN TransTeleCom, Rostelecom, TransTeleCom, TransTeleCom (x2) TIS Dialog KAUNAS TPSA, Hawe, Exatel Hawe, Exatel, Orange Polska Hawe, Exatel, TK Telekom TK Telekom KRUONIS TECHNOLOGY PARK VILNIUS DLC TEO Lithuanian Railways Beltelecom Beltelecom Belarusian Railways

10 NORDIC CLIMATE AND COOLING SOLUTIONS Lithuania's Nordic Climate is Ideal for Data Centers Cost effcient cooling the average temperature is 44.6 F Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec Average Temperature in F Water for cooling The best option is to use water from the Kaunas lagoon which is yards away from the site The Kaunas lagoon holds billion gallons and has an area of 15,690 acres. The Kruonis HPSPP upper reservoir holds 12.6 billion gallons and has an area of 756 acres

11 SECURE LOCATION Secure Location A location with minimal environmental hazards Lithuania is ranked as one of the safest locations in the world on The World Risk Index The World Risk Index consists of various indicators Lithuania has a low exposure to natural hazards, i.e. earthquakes, storms, floods, droughts, sea level rise The country has a low degree of susceptibility, i.e. is less likely to suffer harm and damage in the event of a natural hazard It has strong coping capacities, such as social and institutional resilience to minimize the impact of natural hazards Lithuania also boasts adaptive capacities, established measures and strategies to enable communities to adapt to and address potential consequences of natural hazards and climate change The crime level in Lithuania is 2 times lower than the EU average Extreme Risk High Risk Medium Risk Low Risk Very Low Risk No Data Available Source: World Risk Index (developed by the United Nations University Institute for Environment and Human Security), 2014 Consolidated political stability Lithuania is a member of the European Union, NATO and the World Trade Organisation All Lithuanian laws are in line with EU Directives Data protection laws mirror all basic requirements of EU Data Protection Directive 95/46/EC Lithuania has concluded over 50 Bilateral Investment Treaties (BITs) with other states. BITs provides assurance and a high degree of certainty for foreign investments

12 COMPETITIVE TALENT POOL Competitive Talent Pool Annual Gross Salary (USD) 1 IT talent pool Head of IT IT Manager Engineering Manager Help Desk Supervisor Network Engineer (3+ years experience) Technical Team Leader Customer Service Team Leader, Multilingual Maintenance Engineer Electrical or Cooling Engineer Customer Service Agent (3+ years experience), Multilingual 44,600 35,400 29,200 26,200 25,600 23,100 23,100 23,000 19,200 17,000 1st in the EU for the proportion of individuals aged who have obtained ICT skills through formal education 2 24,500 employed IT professionals 6,200 IT students in total studying at seven universities and fourteen colleges, generating over 1,750 IT graduates per year 1st in the EU for mathematics, science and technology graduates 3 Labor Costs Labor costs in Lithuania more than four times lower than in other EU countries 3 3rd lowest salaries in the EU 3 Source 1: Alliance for Recruitment, 2013 Source 2: European Commission Source 3: Eurostat, 2013

13 LEADING ICT INFRASTRUCTURE Leading ICT Infrastructure 1st 1st 2nd 3rd in the World Competitiveness Rankings for communication technology 1 in the EU for Internet upload speed in the EU for the Internet donwload speed in the EU for the share of fixed broadband 2 lines equal to or above 30 Mbps The capital city of Vilnius has the fastest 3 Internet upload speed in Europe The most up-to-date ICT technologies (3G mobile communications infrastructure, mobile WiMAX 4G Internet etc.) fully imple - mented and functioning in the entire country 2nd Fastest Internet Download Speed 3 Worldwide (Mb/s) Hong Kong 76.2 Singapore 61.6 Romania 57.6 South Korea 51.6 Switzerland Sweden 41.7 Japan 41.6 Netherlands 40.8 Taiwan rd Fastest Internet Upload Speed 3 Worldwide (Mb/s) Hong Kong 64.5 Singapore 47.7 South Korea Macau 35.8 Latvia 30.2 Romania 29.4 Republic of Moldova 29.4 Japan 29.0 Denmark 26.2 Source 1: IMD, The Word competitiveness yearbook, 2013 Source 2: FFTH Council Europe Source 3: Ookla Net Index, April, 2014

14 FINANCIAL INCENTIVES Financial Incentives Special Economic Zone status, which provides companies with the following advantages : No corporate tax for six years (15% is the standard rate) 50% discount on corporate income tax for the following 10 years No real estate tax Funds allocated for further infrastructure development at Kruonis Technology Park: Infrastructure has been developed and upgraded (access road upgrade, water supply, and related infrastructure) Land plots can be designed according to a company s requirements and future plans for expansion

15 IMPORT DUTIES IN Import Duties in Lithuania Import duties applied to individual groups of goods from outside the EU Groups of goods Uninterruptible power supply Servers Cables Fire Protection Systems Conditioning systems Electric power generator Conventional rate of duty (%) Free Lithuania has eliminated import duties for Intra-Community trade A unifed system of import duties has been established for all European Union countries Import duties are applied only in cases where goods are imported from third countries Import duty depends on the type of imported goods, and the duty rate depends on the state from which the goods are imported

16 ACCESSIBILITY : IN THE CENTER OF EUROPE Accessibility NORTH ATLANTIC OCEAN Kaunas Airport (22 miles away ) COPENHAGEN 1:05 SWEDEN PALANGA NORWAY Stockholm SIAULIAI BALTIC SEA KLAIPEDA NORTH SEA les mi 0 52 BALTIC SEA IRELAND GREAT BRITAIN NETHERLANDS miles 2:50 London Frankfurt 2:10 iles Amsterdam m 50 GERMANY 9 Frankfurt ATLANTIC OCEAN Major destinations FINLAND ESTONIA s mile 24 Frankfurt 5 London 23 Paris 15 Copenhagen 14 Frankfurt 14 Helsinki 14 Warsaw 14 Brussels 12 Stockholm 11 Amsterdam 7 Vienna 7 Berlin 6 2:50 1:30 2:00 1:25 2:35 VILNIUS FRANCE BLACK SEA ITALY SPAIN Moscow UKRAINE 64 miles Frequency (flights per week ) London Copenhagen Frankfurt MOsCOW Paris Major destinations London Moscow KAUNAS PANEVEZYS Frequency (flights per week ) Vilnius Airport (53 miles away ) KRUONIS TECHNOLOGY PARK MEDITERRANIAN SEA European Union Sources: Kaunas and Vilnius airports

17 CONTACT Invest Lithuania