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Facebook eyes second Danish data centre after buying large plot

Social media giant Facebook has bought a large plot of land near Esbjerg in western Denmark and is reported to be considering construction of a major data centre.

Facebook is considering building a second Danish data centre. this time near western city Esbjerg.
Facebook is considering building a second Danish data centre. this time near western city Esbjerg. File photo: Dado Ruvic/Reuters/Ritzau Scanpix

The plot, located at Andrup, is 212 hectares in area and cost 277 million kroner, Esbjerg Municipality said in a statement.

The US company made similar considerations in 2018 and 2019 before not going ahead with a construction project. But plans to build a Danish data centre appear to now be back on the table.

In a written comment, a Facebook spokesperson said no final decision had been made to build a datacentre.

“In the coming months, introductory, preparatory work will be undertaken to support further development of the area,” the spokesperson said in comments reported by news wire Ritzau.

“The construction of a data centre will not begin until a final investment decision has been made,” they added.

The plot of land is the size of approximately 300 football pitches.

Esbjerg mayor Jesper Frost Rasmussen praised the sale but noted a data centre was not guaranteed.

“I’m very pleased that Facebook is back in Esbjerg and again looking into establishing a data centre at Andrup,” Rasmussen said.

“The completion of a purchasing contract is just the first milestone in this process,” he added.

Facebook already has one large data centre in Denmark. The centre, near Odense is around 100,000 square metres in size. The company is reported to be considering extending it.

The Odense centre is one of 18 data centres run by the company globally. 14 are in the United States.

READ ALSO: Danish media team up to forge copyright deals with Google and Facebook

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Labour shortage hits half of Danish companies in construction sector

A record-high shortage of labour at some Danish companies is exacerbated in some places by a lack of materials, according to new data.

A file photo of construction in Aalborg. As many of half of construction companies in Denmark currently report a lack of labour.
A file photo of construction in Aalborg. As many of half of construction companies in Denmark currently report a lack of labour. Photo: Henning Bagger/Ritzau Scanpix

The construction industry reports a lack of labour at around half of all companies, according to a survey by Statistics Denmark, based on responses from businesses.

In the service industry, which includes restaurants, hotels and cleaning, one in three companies reported a lack of workforce.

Some industries, notable machinery related businesses, also said they are short of materials currently.

The lack of labour is holding the Danish economy back, according to an analyst.

“Never before have we seen such a comprehensive lack of labour in the Danish economy,” senior economist Søren Kristensen of Sydbank said.

“It’s a shame and it’s a genuine problem for a significant number of the businesses which at the moment are losing revenue as a consequence of the lack of labour,” Kristensen continued.

“That is costly, including for all of Denmark’s economic growth. Even though we on one side can be pleased that it’s going well for the Danish economy, we can also regret that it could have been even better,” the economist said in a comment to news wire Ritzau.

Despite the lack of labour, businesses have their most positive outlook for years, according to Statistics Denmark.

The data agency based its conclusions on a large volume of responses from companies related to revenues, orders and expectations for the future.

The numbers are processed into a measure termer business confidence or erhvervstillid in Danish. The October score for the metric is 118.7, the highest since 2010, although there are differences between sectors.

READ ALSO: Are international workers the answer to Denmark’s labour shortage?

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