Euronext, a pan-European market infrastructure which connects European economies to global capital markets, has completed the migration of its core data centre and related colocation services from Basildon, UK, to the Aruba Global Data Centre IT3 in Bergamo, Italy.
The bourse stated that “the dynamic created by Brexit”, the “acquisition of Borsa Italiana Group in April 2021” (from the London Stock Exchange Group) and “a strong rationale to locate a data centre in a country where Euronext operates a large business” were factors which it had taken into consideration when deciding whether it should make the move.
The core data centre, now in Italy, handles 25% of European trading volumes. In addition, the data centre now meets the highest quality standards (Rating 4 certification), provides the maximum level of safety and resilience, and is 100% powered by renewable energy.
These sustainable features enable Euronext and related market participants to lower their carbon footprint and environmental impact.
Key Milestone for Euronext ESG Strategy
Euronext’s strategic move now allows the bourse to operate a premium colocation facility, which it notes will open up new opportunities for development of services, and contribute to the planned delivery of the €100 million run-rate annual EBITDA synergies, which is related to the Borsa Italiana Group acquisition targeted for 2024.
In a press statement, Euronext said that its migration to a new green core data centre represents a key milestone in Euronext’s Fit for 1.5°” commitment, part of its ESG strategy. The Aruba data centre is powered mostly by self-produced renewable energy, through a large photovoltaic system and a hydroelectric unit. Efficient cooling systems using geothermal and dynamic free cooling reduces heat wastage from the data centre, as does enhanced adoption of cloud computing in the data centre, which reduces the number of servers.
Chief Executive Officer and Chairman of the Managing Board of Euronext, Stéphane Boujnah, said that: “The migration of Euronext’s Core Data Centre to Italy… is the first major achievement within Euronext’s Growth for Impact 2024 strategic plan, paving the way for the migration of the Italian cash equities and derivatives markets to the Euronext Optiq® trading technology as soon as 2023.
Brexit’s Impact on the Data Centre Industry
Although Euronext did not elaborate on how Brexit affected its decision to migrate its core data centre, the shift is nonetheless strongly indicative of the ripple effects Brexit has left across the data centre industry.
For instance, beyond supply-chain issues and disruptions from the slow decoupling between the UK and the European Union (EU), corporations are also still adjusting to new data regulations in the UK, which are different from the EU’s rules, such as the General Data Protection Regulation.
Notably, as a result of the uncertainty, firms are increasingly fixated on, and demanding, data sovereignty. In post-Brexit UK, British firms are key drivers of demand for sovereign data hosting methods, as many businesses are more wary of extra costs and regulations associated with storing data overseas. Consequently, there has been strong demand for UK-based data centres and colocation services.
Hence, Euronext’s migration of its core data centre to Italy is indicative of the bourse’s responsiveness to geopolitics, and its awareness of competition from UK-based firms. The shift likely reflects Euronext’s strengthening of its commitment to the European market, and enhancement of its data centre’s high-tech, sustainable features, to remain future-ready and competitive in the industry.
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