lithuania a prime location for data centers

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A PRIME LOCATION FOR DATA CENTERS

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LITHUANIA PRIME LOCATION FOR DATA CENTERS SUMMARY • Stable Power Supply • Resilient Power Infrastructure on Site • Renewable Energy • Fiber Network • Nordic Climate and Cooling Solutions • Secure Location • Competitive Talent Pool • Leading ICT Infrastructure • Financial Incentives • Accessibility

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Page 1: Lithuania a prime location for data centers

Invest Lithuania+370 52 [email protected]

CONTACTA PRIME LOCATION FOR DATA CENTERS

Page 2: Lithuania a prime location for data centers

London

Frankfurt

19

5

Major destinationsFrequency

(flights per week )

Kaunas Airport (22 miles away ) Vilnius Airport (53 miles away )

Accessibility

Moscow

London

Copenhagen

Frankfurt

Helsinki

Warsaw

Stockholm

Amsterdam

Vienna

Berlin

24

23

14

14

14

14

11

7

7

6

Major destinations

London 23

Frequency(flights per week )

Brussels 12

Sources: Kaunas and Vilnius airports

BLACK SEA

BALTICSEA

MEDITERRANIAN SEA

NORTH ATLANTIC OCEAN

ATLANTIC OCEAN

NORTH SEA

NORWAY

SWEDEN FINLAND

RUSSIA

SPAIN

ITALY

GREATBRITAIN

FRANCE

IRELAND

NETHERLANDS

GERMANY

LATVIA

BELARUS

UKRAINE

ESTONIA

POLAND

LITHUANIA

Moscow

Stockholm

Frankfurt

Amsterdam

560 miles

950 miles

520 miles

1 000 miles

LITHUANIA: IN THE CENTER OF EUROPE

European Union

Paris 15

Lithuaniain the Centerof Europe

Facts and figures

Easy to do business

21st freest economy in the World1

17th out of 189 world economies for ease of doing business2

Source 1 : Heritage Foundation, Economic Freedom Index, 2014 (evaluates 10 components of economic freedom, assigning a grade in each using a scale from 0 to 100, where 100 represents the maximum freedom. The 10 economic freedoms are grouped into 4 broad categories: Rule of Law (property rights, freedom from corruption); Limited Government (fiscal freedom, government spending); Regulatory Efficiency (business freedom, labor freedom, monetary freedom); and Open Markets (trade freedom, investment freedom, financial freedom)

Source 2 : World Bank Doing Business Report, 2014 (The index ranks economies from 1 to 183 calculating the average of the percentile rankings of starting a business, dealing with construction permits, registering property, getting credit, protecting investors, paying taxes, trading across borders, enforcing contracts, resolving insolvency and getting electricity)

Source 3 : Statistics Lithuania, 2013

Size:

Population:

Capital:

Official language:

Dominant foreignlanguages:

Membership:

Politics:

Currency:

Real GDP growth: 2013 2012

Inflation: 2013 2012

25,212 mi

2.98 million

Vilnius

Lithuanian

English, Russian,German, Polish

EU, NATO, WTO

Parliamentary democracy since independence in 1990

Lithuanian Litas (LTL) Pegged to EUR3.45 LTL / 1 EUR

3.3%3.7%

1.2%3.2%

3

3

2

Page 3: Lithuania a prime location for data centers

Data center park containing the most reliable power supply

185 acre ready-to-build site next to the 900 MW Kruonis Hydro Pumped Storage Power Plant (HPSPP)

dark fiber on-site, and redundant Highest level of physical security,

cooling solutions

KruonisTechnologyPark

BALTIC SEA

RUSSIA

POLAND

BELARUS

LATVIA

SIAULIAIPANEVEZYS

VILNIUSKAUNAS

KLAIPEDA

64 miles

KRUONISTECHNOLOGY PARK

Page 4: Lithuania a prime location for data centers

Outstanding electricity grid for critical facilities -

185 acres ready-to-build greenfield site

access to 100 MW and more of power load

Special Economic Zone status, which provides corporate tax incentives

Site is ready for construction – all documentation (conditions and special requirements) is already issued

Site is adjacent to highly secured national strategic asset site Kruonis HPSPP

Lithuania has low exposure to natural hazards, i.e. earthquakes, storms, floods, droughts, sea levelrise

Overview

KRUONIS HPSPP

KRUONISTECHNOLOGY PARK

STREVA

185 acres

KRUONIS HPSPPRESERVOIR

Kaunas LAGOON

KRUONIS TECHNOLOGY PARK

330 kV single330 kV double110 kV double330 kV double (Link to Poland, in 2015)Access to cooling waterProbable maximum flood

Page 5: Lithuania a prime location for data centers

Stable Power Supply

Resilient Power Infrastructure on Site

Renewable Energy

Fiber Network

Nordic Climate and Cooling Solutions

Secure Location

Competitive Talent Pool

Leading ICT Infrastructure

Financial Incentives

Accesibility

Summary

Page 6: Lithuania a prime location for data centers

Wind park

Prospective wind park

Heat power plant

Hydro power plant

Prospective nuclear power plant

330 kV line

440 kV prospective line

330 kV prospective line

330 kV prospective cable

110 kV line

330 kV tranformer substation

330 kV prospective substation

330 kV switchyard

330 kV prospective switchyard

110 kV transformer substation

BALTIC SEA

RUSSIA

POLAND

BELARUS

LATVIA

KAUNAS

VILNIUS

KLAIPEDAPANEVEZYS

VISAGINAS

KRUONISTECHNOLOGY PARK

RESILIENT POWER INFRASTRUCTURE ON SITE

Resilient PowerInfrastructure on Site

Strategic location for critical facilities

Next to Kruonis HPSPP (900 MW capacity)

12 miles away from Kaunas Hydroelectric Power Plant (101 MW capacity)

Site is at the core of Lithuania’s power grid

Imediate access to 10 MW of power load already installed at the site, which is expandable to 100 MW and more

Five redundant 330 kV lines and six 110 kV lines available at the site

Page 7: Lithuania a prime location for data centers

Lithuania provides the opportunity to purchase electricity from Kaunas Hydro Power Plant with Renewable Energy Guarantees of Origin.

Possibility to invest in ready-to-build wind parks close to the Kruonis Technology Park

Developing green energy share in Lithuania

Certfied green energy for Data Centers

Lithuania is targeting a 23% renewable energy share by 2020 (currently ~22%)

By 2020 Lithuania aims to have 500 MW of installed wind energy capacity, at least 355 MW of biomass, 141 MW of hydro energy and more than10 MW of solar

Renewable EnergyCertified Green Energy

RENEWABLE ENERGY

Page 8: Lithuania a prime location for data centers

Dark fiber providers on site:

TEO 9.4 miles away

Skaidula9.4 miles away

Lithuanian Railways 15 miles away

(Finland, Germany, Russia and others) can be easily established via partner networks

Fiber Networkon Site

FIBER NETWORK

Links with European fiber optic hubs

Warsaw

BLACK SEA

BALTIC SEA

MEDITERRANIAN SEA

NORTH SEA Moscow

Stockholm

Frankfurt

Berlin

Warsaw

Minsk

Riga

Sankt Peterburg

Tallinn

Helsinki

Amsterdam

NORWAY

SWEDEN FINLAND

RUSSIA

SPAIN

ITALY

GREATBRITAIN

FRANCE

IRELAND

NETHERLANDS

GERMANY

LATVIA

BELARUS

UKRAINE

ESTONIA

POLAND

LITHUANIA

Prague

Milan

Rome

Paris

Kiev

Madrid

London

Copenhagen 2015

2016

DLC on site

RAIN2.4 miles away(On site, in 2015)

BALTIC SEA

RUSSIA

POLAND BELARUS

LATVIALATVIA

sweden

LITHUANIADLCTEOSkaidula

Lithuanian Railways

LATVIALattelecom, LatvenergoLattelecomLattelecom, Latvian Railways,Latvian RTC, Latvenergo

Latvian Railways

Lithuanian Railways

LITHUANIADLC

TEO

BELARUS

Beltelecom

Beltelecom

Belarusian Railways

LITHUANIADLCTEOSkaidula

Lithuanian Railways

POLAND

TPSA, Hawe, ExatelHawe, Exatel, Orange PolskaHawe, Exatel, TK TelekomTK Telekom

LITHUANIADLCTEO

Lithuanian Railways

RUSSIATransTeleCom,Rostelecom,

TIS Dialog

TransTeleCom,TransT

VILNIUS

KAUNAS

KLAIPEDA

PANEVEZYS

LITHUANIATEO

swedenTelia Latvija, TeliaSonera

DLC Construction will befinished in 2015

Skaidula

eleCom (x2)KRUONISTECHNOLOGY PARK

Alternative connection through RAIN

Page 9: Lithuania a prime location for data centers

NORDIC CLIMATE AND COOLING SOLUTIONS

Cost effcient cooling – the average temperature is 44.6°F

The best option is to use water from the Kaunas lagoon which is 110-330 yards away from the site

The Kaunas lagoon holds 121.5 billion gallons and has an area of 15,690 acres. The Kruonis HPSPP upper reservoir holds 12.6 billion gallons and has an area of 756 acres

Water for cooling

Lithuania's Nordic Climateis Ideal for Data Centers

Average Temperature in °F

Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec

26.8 16.6 35.4 45.9 58.9 59.5 66.9 62.7 55.9 45.3 40.6 24.3

Page 10: Lithuania a prime location for data centers

A location with minimal environmental hazards

Lithuania is ranked as one of the safest locations in the world on The World Risk Index

SecureLocation

Lithuania has a low exposure to natural hazards, i.e. earthquakes, storms, floods, droughts, sea level rise

The country has a low degree of susceptibility, i.e. is less likely to suffer harm and damage in the event of a natural hazard

It has strong coping capacities, such as social and institutional resilience to minimize the impact of natural hazards

Lithuania also boasts adaptive capacities, established measures and strategies to enable communities to adapt to and address potential consequences of natural hazards and climate change

The crime level in Lithuania is 2 times lower than the EU average

The World Risk Index consists of various indicators

Lithuania is a member of the European Union, NATO and the World Trade Organisation

All Lithuanian laws are in line with EU Directives

Data protection laws mirror all basic requirements of EU Data Protection Directive 95/46/EC

Lithuania has concluded over 50 Bilateral Investment Treaties (BITs) with other states. BITs provides assurance and a high degree of certainty for foreign investments

Consolidated political stability

Source: World Risk Index (developed by the United Nations University Institute for Environment and Human Security), 2014

Extreme Risk

High Risk

Medium Risk

Low Risk

Very Low Risk

No Data Available

SECURE LOCATION

Page 11: Lithuania a prime location for data centers

6,200 IT students in total studying at seven universities and fourteen colleges, generating over 1,750 IT graduates per year

1st in the EU for mathematics, science and technology graduates3

IT talent pool

Competitive Talent Pool

Head of IT

IT Manager

Engineering Manager

Help Desk Supervisor

Network Engineer(3+ years experience)

Technical Team Leader

Customer Service Team Leader, Multilingual

Maintenance Engineer

Electrical or Cooling Engineer

Customer Service Agent(3+ years experience), Multilingual

44,600

35,400

29,200

26,200

25,600

23,100

23,100

23,000

19,200

17,000

Annual Gross Salary (USD)

Labor costs in Lithuania more than four times lower than in other EU countries3

3rd lowest salaries in the EU3

Labor Costs

1

1st in the EU for the proportion of individuals aged 16-24 who have obtained ICT skills through formal education 2

Source 1 : Alliance for Recruitment, 2013 Source 2 : European Commission Source 3 : Eurostat, 2013

24,500 employed IT professionals

COMPETITIVE TALENT POOL

Page 12: Lithuania a prime location for data centers

in the World Competitiveness Rankings forcommunication technology

in the EU for Internet upload speed

in the EU for the Internet donwload speed

in the EU for the share of fixed broadband lines equal to or above 30 Mbps

2nd Fastest Internet Download Speed Worldwide (Mb/s)

Leading ICTInfrastructure

Hong Kong

Singapore

Romania

South Korea

Switzerland

LITHUANIA

Sweden

Japan

Netherlands

Taiwan

61.6

76.2

57.6

51.6

50.0

43.1

41.7

41.6

40.8

39.9

Source 1: IMD, The Word competitiveness yearbook, 2013Source 2: FFTH Council Europe Source 3: Ookla Net Index, April, 2014

The capital city of Vilnius has the fastest Internet upload speed in Europe

The most up-to-date ICT technologies(3G mobile communications infrastructure, mobile WiMAX 4G Internet etc.) fully imple -mented and functioning in the entire country

1st

1st

3rd

2nd

1

2

3

3

3rd Fastest Internet Upload Speed Worldwide (Mb/s) Hong Kong

Singapore

South Korea

LITHUANIA

Macau

Latvia

Romania

Republic of Moldova

Japan

Denmark

44.2

64.5

47.7

38.5

35.8

30.2

29.4

29.4

29.0

26.2

3

LEADING ICT INFRASTRUCTURE

Page 13: Lithuania a prime location for data centers

Special Economic Zone status, which provides companies with the following advantages:

Funds allocated for further infrastructure development at Kruonis Technology Park:

FinancialIncentives

No corporate tax for six years (15% is the standard rate)

50% discount on corporate income tax for the following 10 years

No real estate tax

Infrastructure has been developed and upgraded (access road upgrade, water supply, and related infrastructure)

Land plots can be designed according to a company’s requirements and future plans for expansion

FINANCIAL INCENTIVES

Page 14: Lithuania a prime location for data centers

Import Dutiesin Lithuania

Groups of goods

Uninterruptible power supply

Servers

Cables

Fire Protection Systems

Conditioning systems

Electric power generator

Conventionalrate of duty (%)

0.0 - 3.3

Free

0.0 - 5.2

1.7 - 6.5

2.2 - 2.7

2.7 - 4.7

Import duties applied toindividual groups of goods fromoutside the EU

Lithuania has eliminated import duties for Intra-Community trade

A unifed system of import duties has been established for all European Union countries

Import duties are applied only in cases where goods are imported from third countries

Import duty depends on the type of imported goods, and the duty rate depends on the state from which the goods are imported

IMPORT DUTIES IN LITHUANIA

Page 15: Lithuania a prime location for data centers

London

Frankfurt

19

5

Major destinationsFrequency

(flights per week )

Kaunas Airport (22 miles away ) Vilnius Airport (53 miles away )

Accessibility

Moscow

London

Copenhagen

Frankfurt

Helsinki

Warsaw

Stockholm

Amsterdam

Vienna

Berlin

24

23

14

14

14

14

11

7

7

6

Major destinations

London 23

Frequency(flights per week )

Brussels 12

Sources: Kaunas and Vilnius airports

BLACK SEA

BALTICSEA

MEDITERRANIAN SEA

NORTH ATLANTIC OCEAN

ATLANTIC OCEAN

NORTH SEA

NORWAY

SWEDEN FINLAND

RUSSIA

SPAIN

ITALY

GREATBRITAIN

FRANCE

IRELAND

NETHERLANDS

GERMANY

LATVIA

BELARUS

UKRAINE

ESTONIA

POLAND

LITHUANIA

Moscow

Stockholm

Frankfurt

Amsterdam

560 miles

950 miles

520 miles

1 000 miles

LITHUANIA: IN THE CENTER OF EUROPE

European Union

Paris 15BALTIC SEA

RUSSIA

POLAND

BELARUS

LATVIA

SIAULIAIPANEVEZYS

VILNIUSKAUNAS

KLAIPEDA

PALANGA

64 miles

KRUONISTECHNOLOGY PARK

LondonCopenhagenFrankfurtMOsCOWParis

2:501:302:001:252:35

LondonFrankfurt

2:502:10

COPENHAGEN 1:05

ACCESSIBILITY