Intel Opens First European Data Center in U.K.

[May 23] Intel Online
the Web hosting arm of Intel Corporation, opened Tuesday its first European
center in the U.K.

The $150 million center in Winnersh, Berkshire, is the fourth in a worldwide
following the recent opening of other centers on the east and west coasts of
United States and in Korea. It will house 10,000 Internet servers and
employment for over 200 staff.

Mike Aymar, president of Intel Online Services, delivered the keynote speech
at Internet World UK 2000, and
explained that the data centers were a major commitment to the Internet by
and represented a significant diversification of the chip-maker’s business.

“Our location in the Thames Valley will offer fast access to an established
Internet infrastructure that services the continent, international financial
institutions and global carrier points,” said Aymar.

The U.K. data center will provide 24-hour computer capacity to companies
that do not have their own internal Web serving resources. It is, however,
much more than a co-location facility, having fully managed servers
maintained to a mission-critical standard for e-businesses.

By the end of 2001, Intel expects to invest around $1 billion in Intel
Online Services, with most of the investment going on building and
equipping the data centers. This year should see the completion of
10 Internet data centers, with the Japanese project already nearing

Many major computer manufacturers besides Intel are building their
own data centers, a fact that puts Intel into competition with
some of its customers such as Dell, IBM and Compaq. Intel has
reportedly bought Sun and Dell servers for its data center in
the U.K.

On the opening day, the U.K. center had just four customers,
among them British Petroleum, and Internet
purchasing venture But with Web hosting expected to
be worth $23 billion worldwide by 2003, according to Forrester
Research, Intel should have little trouble running its centers
at near-full capacity.

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