Intel to set up a server farm in UK

Intel has announced plans for a 10,000-strong server farm in the UK's Thames Valley.

The Reading-based farm will host Web sites for companies who cannot afford their own servers. It will employ 170 staff and should be operational during the first half of the year.

Intel Online Services already runs two server farms in California. But this, its first non-US facility, amounts to a $150 million investment in Britain. The UK government welcomed Intel's announcement as a sign that Britain is the leading centre in Europe for ecommerce.

Rob Lewtas, head of new business development at the South East England Development Agency (SEEDA), said the deal took ten months to negotiate. "We have not resorted to enticing them in with short-term financial incentives; we've aimed to satisfy their commercial objectives and business requirements," he told Silicon.com.

Lewtas said Intel was looking for a European location that was close to transport and business centres, with a good labour supply and quality telecommunications and support infrastructure. "They were also looking at West London as one of their options," he said.

Intel aims to set up other European facilities in the near future.