A Russian Billionaire Is Building A $355 Million Data Center In Siberia

Siberia Data Center

Billionaire Oleg Deripaska’s En+ Group has announced plans to invest $355 million in a new data center that will be located in Siberia. The company chose that location because of its cheap electricity and a rising demand for data services in the region.

The new Siberian data center will be used to pass along and store data for customers in Russian and Asian markets. En+ Group, Huawei, and several other agencies signed an accord on Thursday in Beijing.

Deripaska will use his Siberian hydropower stations that feed his aluminum smelters to power the data center.

Demand for data centers in Russia have increased in recent months after Russia’s President Vladimir Putin declared that all data for Russian customers must be stored on Russian servers.

 The first phase of the project will include a $55 million facility with 1,800 computer racks that will be built by 2018. In a statement En+ Group said 8,000 racks will be housed in the facility by 2024, requiring more than $300 million in added investment.
Russian information-technology company Lanit and China’s Centrin Data Systems will also participate in the project.

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Written by Peter Mondrose

Peter Mondrose

Peter Mondrose is the Editor-In-Chief at BusinessPundit. He received his degree in Economics in 1998 and a second degree in Journalism in 2004. He has served as a financial adviser, market trader, and freelance journalist for the last 11 years. When he's not investigating market conditions and reporting on workplace news, he can be found traveling with his wife, dog, and laptop. He can be reached at OnlineDegree.com.