T-Systems Plans Cloud Data Center in Germany

T-Systems is building a large new data center near Magdeburg, Germany, which will provide 258,000 square feet (24,000 square meters) of IT equipment space. The project was announced Wednesday by Deutsche Telekom, the parent of T-Systems, which said the new facility will provide infrastructure to offer cloud computing services.

"Cloud computing is a growth driver," said Deutsche Telekom CEO René Obermann. "When intelligence moves to the network, customers purchase and pay for ICT solutions on a flexible basis as required. At present, customers are primarily large corporations, but an increasing number of smaller firms and consumers will benefit from cloud computing in the long term.

"Consequently, we are gradually expanding our cloud computing capacity," OBermann added. "Germany offers an important locational advantage to our customers, including our international business customers: It has a particularly secure legal framework in terms of data privacy."

The first phase of 97,000 square feet (9,000 square meters) will be completed in 2012 and create about 70 new jobs, the company said, adding that the state of Saxony-Anhalt is supporting the project with a subsidy in the "double-digit million range."

"This represents a further boost to the local IT sector, which is already growing strongly," said Saxony-Anhalt's Minister for Economic Affairs, Dr. Reiner Haseloff. "We have been holding intensive negotiations with T-Systems about the site since the end of 2009 and these negotiations have now been successfully concluded. By providing financial support, we are investing in truly innovative technology, which will offer good employment prospects in Saxony-Anhalt in the long term."