Denmark - the new world class data centre hub

Martine KildebyInvestment Manager+49 (0) 89 54 58 54 25

markil@um.dk

Kim SchultzSpecial Advisor Data Centres Phone: +45 21 40 83 80kimsch@um.dk

Jørn ThorgårdSpecial Advisor – Data Centres+45 8787 8611jortho@um.dk

Invest in Denmark World Wide

Denmark’s national investment promotion agency, integrated part of

the Ministry of Foreign Affairs

Acces to local expertise and network

Invest in Denmark on this DC tour

Plus lots of local experts and service providers

Invest in Denmark is a partner all the way

Before

Information gathering and analysis

________

Market overview

Benchmarking services

Mapping potential partners, costumers and service providers

Identifying business and funding opportunities

Industry insights

During

Business establishment

________

Practical assistance

General advice on legal, financial and corporate structure matters

Fact-finding

Land and property search

Introductory meetings with business clusters and public

authorities

After

Expansion and retention

________

Expansion support

Identify new business opportunities

Aftercare

No. 1 in Europe for ease of doing business

World Bank 2012-2016________

Credit ratingAAA

S&P, Moody’s and Fitch 2017________

The least corruptcountry in the world

IMD & Transparency International, 2016________

One of the mostflexible labour markets in the world

IMD, 2016

Unique frame conditions for business

• Lower tax (22 %)

• Set up subsidiary in a few hours

• More flexibility in up and down scaling

• No redundancy costs

• No physical presence required

• Gateway to the Nordics

• Unique “no double taxation” rule

International companies can benefit

But what is so special about Denmark?

Hygge- a sense of community and security

But Denmark is also…

Data Centres- a sense of community and security

So what is happening in Denmark?

Apple invests €1.65 Billion in two Danish data centres

“This significant new investment (the Viborg site) represents Apple’s biggest project in Europe to date. We’re thrilled to be expanding our operations, creating hundreds of local jobs and introducing some of our most advanced green building designs yet.”

Tim Cook, CEO, Apple

Data Centre Supplier

Chooses Denmark to

Leverage the Danish

Business Conditions“Economic stability and an innovative and

effective professional culture make Denmark an ideal place to conduct

business. (..) In Denmark we can further pursue cutting-edge green solutions that

are central to Interxion’s strategy business.”

Peder Bank, Managing Director, Interxion Nordic

Facebook Chooses Denmark to

Build Data Centre for the Future

“This one [data centre] will be powered by 100% renewable energy and support thousands of jobs in the community over the next few years. (..) this data centre will help make sure Facebook keeps running smoothly for

all of you. Thanks for having us, Odense!”

Mark Zuckerberg, CEO, Facebook

Google buys lots of land in DenmarkGoogle har købt grund for over 65 millioner kroner i industriområdet Prinsessens Kvarter ved Fredericia. Grunden skal potentielt anvendes til et gigantisk datacenter.

Computerworld

Apple to Invest 1.65 billion Euro in Two Danish Data Centres

Facebook Chooses Denmark to Build Data Centre for the Future

Google buys two giant land sites in Aabenraaand Fredericia in Denmark

Denmark is sustainable

Politics

Energy Agrrement accepted by 90 % of Government________

Ambitious energy targets

________

100 % renewable energy

________

Reuse of waste

Leading country in Domestic heating by“the Danish model”

Data centres supports the strategy of the Danish Government

Politically

• DKK pegged to the Euro

• AAA rated

• Heavy public investments

Geografically

• Stable climate

• No natural disasters

Denmark is safe

-5

0

5

10

15

20

25

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era

ge

Tem

per

atu

re

Average temperature per month

High

Normal

Low

Denmark is reliable

Source: Energinet

Power

Most reliable power grid in Europe (after Luxenburg)

Denmark is competitative…

Austria

Belgium

Denmark

France

Germany

Ireland

Italy

LuxembourgThe Netherlands

Norway

Portugal

Spain

Sweden

UK

Finland

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50

100

150

200

250

3.00 4.00 5.00 6.00 7.00 8.00 9.00 10.00

Inte

rru

pti

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tim

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Power grid costs

…also regarding power costs

0.00

2.00

4.00

6.00

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10.00

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16.00

UK Germany EU-28 Denmark Netherlands Norway Sweden

Taxes

Grid costs

Market price

Taxes gradually removed 2017-2021

Electricity Costs, Euro Cent per kWhSource: Dong Energy, October 2016

Denmark is well (best?) connected!

…and connectivity is increasing

Internet Exchange in Esbjerg

Existing and future submarine fiber-optic cables.

Connections to: US, Holland, Germany, UK, Irland and Island.

Objectives• Provide a world-leading Internet Exchange

point for the mutual benefit of its member.

• Leading IX in Northern Europe.

Why

• Extremely well connected to the core internet(terrestrial and submarine cables).

• Low latency to other major Internet hubs.

• Support from national carries and large eyeball holders in Denmark.

Existing and future submarine fiber-optic cables.

Connections to: US, Holland, Germany, UK, Irland and Island.

Denmark has dark fibre potential

Denmark has lots of land…

Area 43,094 km2 (The Netherlands: 41,543 km2)

Population density 131 /m2(The Netherlands: 407)

Flat terrain with a few gently rolling plains

Plug n’ Play Sites Available in All Sizes

Building permits in 6 weeks

Compared to Germany Denmark has…

• Lower power costs

• More reliable power supply

• More green power

• Sufficient fiber connectivity to Germany

• Many potential sites available

• Construction permit within 6 weeks

• Appeals do not delay the project

• Lower cost of land

• Less than 2 hours drive from Hamburg

• 99,997% power grid uptime

• Political, economic and environmental security &

stability

• Large scale sites available

• Low latency and excellent fibre connectivity

• Competitive electricity prices

• Cool climate = free air cooling

• 100% electricity available from renewable sources

• Use the heat from data centres for district heating

• No. 1 in Europe for fast building permits

• Very close to the German market

That’s way Denmark is a world class Data Centre hub!

Contact us for more information

Martine KildebyInvestment Managermarkil@um.dk+49 (0) 89 54 58 54 25

Kim SchultzSpecial Advisor Data Centres Phone: +45 21 40 83 80kimsch@um.dk

Jørn ThorgårdSpecial Advisor – Data Centres+45 8787 8611jortho@um.dk