Viderium Ltd is a firm that focuses on providing a range of data solutions, such as creating and operating data centres that facilitate high-performance computing, or HPC. Data centres typically store computer systems and related equipment, including telecommunications and storage systems, as well as security devices, environmental controls and backup power sources. Data centres have emerged as an asset class that attracts interest from investors. These centres are classed as ‘technical real estate’, which investors see as a hybrid investment that combines the traditional characteristics of property investment with the prospects of a fast growing computer company.
The company has recently announced that it plans to expand, moving some of its business operations to Latvia.
Currently, Viderium has facilities in Hampshire in the South of England as well as in Rotterdam in the Netherlands. The company, which offers a corporate bond to those investors who are qualified, will benefit from the move to Latvia for several reasons, including more diversified operations and lower outgoing costs.
Ross Archer, Chief Executive Officer at Viderium, notes that Latvia was selected as the third site for the company as it offers “some very favourable commercial terms which will only enhance our bottom line.” Archer goes on to explain that high-performance computing is an ‘energy intensive’ activity, and therefore it is important to Viderium that it finds locations that are “the most cost effective and sustainable areas to do business.”
Latvia offers very competitive pricing. However, it also offers technical advantages such as fast internet speeds. Latvia was ranked as one of the top ten countries for internet connection speed and boasts the newly created Baltic Highway.
Launched in 2012, the Baltic Highway is a data transmission network that has seen an increase in the access speed for international online content. The highway has also facilitated the development of digital services that rely on the internet between the East and the West. Since its creation, the Baltic Highway has offered high capacity infrastructure to businesses in the area, which has created strong investment opportunities for companies that are data-intensive.
The combination of lower operating costs and a solid internet infrastructure makes Latvia a smart choice for Viderium. The company plans to ship equipment to the facility in Latvia by July 2018.