'Facebook effect' turns Swedish steel town into tech hot-spot

Facebook will double the size of its data centre in Sweden’s northern city of Lulea, raising its total investments in the region to about 8.7 billion crowns ($987 million), the company said on Monday. The campus, opened in 2013, is the first Facebook data centre set up outside the United States.

The expansion will make it one of the largest data centers in the world, said Node Pole, an investment hub, partly owned by utility Vattenfall, which seeks to promote investments in power-hungry data centres.

Sweden and its Nordic neighbours, with cheap electricity and low temperatures, are attractive for data centres, with many Silicon Valley giants and cryptocurrency miners rushing to move in. 

Facebook will add a third building to the existing two at the Lulea data centre, which Vattenfall supplies electricity to.

“This third building will measure nearly 50,000 square meters, and we anticipate will start serving traffic in early 2021,” Facebook said in a statement.

The expansion will increase the social media giant’s total cumulative investment in the region to around 8.7 billion crowns, it added, without disclosing the exact cost of the new project.

Lulea’s mayor Niklas Nordstrom said the new building would double the size of the data center to more than 100,000 square metres (1.1 million square feet) and double its capacity of operations.

The current two-building campus consumes more than one per cent of Sweden’s total power production and that will also double, he told Reuters. The expansion will create about 100 new Facebook jobs at the centre, which currently employs fewer than 200 people, while its construction will create about 1,000 temporary jobs, Nordstrom said.