Internet hub to double in size

Published on Thursday 7 October 2010 14:00

A DATA centre business set up by Royal Bank of Scotland at the height of the dotcom boom is doubling capacity under an £8 million investment plan that will see it take on a third more staff.

ScoLocate, set up in 1999, is already the largest of Scotland's so-called "internet hotels", providing businesses and public sector bodies with remotely hosted computer services. Having survived the tech crash and a management shake-up in 2001, the firm booked turnover of 4.9m last year. It remains majority owned by RBS.

Managing director Roy Maxwell said strong organic growth in the past few years had seen the Edinburgh-based facility hit its capacity limits.

Work is now under way, in two phases, to double that hosting capability in a move that involves fitting out previously vacant space.

Maxwell estimated that the firm will spend between 7m and 8m on its expansion drive. As a result, ten additional staff are being recruited, covering IT and security functions, taking the overall headcount to about 35.

Data centres typically draw large amounts of power, partly to cool the vast arrays of computer servers and storage devices.

ScoLocate said the investment in its South Gyle operation would create the UK's most "eco-efficient" centre using "locally produced renewable energy combined with a minimal carbon footprint".

Maxwell said: "After coming close to capacity we decided to undertake a considerable investment and further fit out the site. The plan has been to build the most efficient data centre we can. We have plenty of colder weather here in Scotland and we may as well take advantage of it."

It is estimated that for every pound spent running a computer server, another pound is required to cool it.

Maxwell claimed that for every pound needed to fire up IT equipment housed at ScoLocate, just 20p was required to cool it.

Phase one of the expansion is due to complete by the end of February, with all of the capacity sold. Maxwell said there had been "significant interest" in the remaining space, which is likely to be available from May. The firm highlighted a string of business wins this year with a total contract value "in excess of" 8m.

Turnover, which last year jumped from about 4.5m to just below 4.9m, is projected to rise to 5.2m in 2010. That figure is set for a "significant" boost next year as the added capacity feeds through.

In the past year or so, major data centre new-builds and expansions have been announced for Aberdeen, Ayrshire, Caithness and Lockerbie.

Maxwell admitted that such facilities remained anonymous to most.

"A huge portion of the nation's internet traffic goes through this building," he observed, "yet most people see the ScoLocate sign and think it is about bringing people to Scotland or housing."

He said the forthcoming government spending review was likely to have a neutral effect on the business.