What are data centers or Datacenters ? Before we see why data centers exist in Iceland , we must first ask a simple question : What is a data center and what does it do ?
We often forget that many of today's businesses and mobile services require vast amounts of computing power from remote computers to run our devices . Businesses use consumer data to predict trends and modify their business plans . That's why all the big tech companies store their customers' data . 
A data center is a dedicated space that businesses use to maintain their IT infrastructure and equipment . They range from server cages to heavy-duty supercomputers that require huge amounts of electricity and constant cooling . In short , data centers act as the brains of a company , and often as the backbone of its IT infrastructure . The equipment stored in data centers ranges from simple storage systems to more powerful supercomputers that can analyze the vast amounts of data stored inside them .
The Verne Global Data Center in Iceland is located on a 44- acre former NATO site . The data center runs in a modular fashion – the building expands as the business grows . The computing equipment is housed in buildings that are reinforced with steel frames .
According to Open Systems CEO Gunnar Gudjonsson , a number of companies – including Facebook , Apple and Google – were interested in building data centers in Iceland , due to the country’s low electricity costs , use of renewable energy sources and location .
What matters most when building a data center is location , location , location.
Companies like Apple, Google and Facebook were interested in this country, which has only 320,000 inhabitants , for one reason. For the location. Strategically, Iceland is located between the United States and Europe.
In addition, the land is cheap, there are tax breaks and incentives for foreign investment, and after the banking crisis six years ago, where the country collapsed, the situation has stabilized.
Energy use and cost
The ongoing costs of running supercomputers and servers are another reason . Iceland is in a unique position due to another major advantage : renewable energy sources . 99.9 percent of the country's energy is generated from renewable energy sources – such as geothermal installations , hydroelectric plants and wind farms .
Landsvirkjun , Iceland’s national power company , supplies 75 percent of Iceland’s energy through these means , and offers long-term contracts to foreign investors to reduce costs . Electricity is therefore cheaper than in Europe – and many companies are benefiting from this .
Heating and cooling
Another factor that reduces the cost of running data centers in Iceland is the year-round temperature . The country has temperatures between -2C and 14C all year round . This , in turn , means that data centers in the country have no need for expensive cooling equipment , as they rely heavily on the country's climate.
Powerful computing equipment requires constant frequent use . If the equipment is not maintained at a reasonable temperature , processing efficiency can decrease – and , in some cases, stop working .
