Irish owned Echelon Data Centres has announced a $250m deal with an affiliate of Starwood Capital Group to jointly buy and construct its second UK data centre, LCY20.

LCY20, based in Chesham in Buckinghamshire, will have a capacity of 30MW. It joins Echelon's LCY10 site, a 20MW facility in London's Docklands.

Echelon said that power is already fully installed on the LCY20 site meaning the data centre capacity can be delivered by late 2022, ahead of most other London area data centres.

Launched in 2019, Echelon Data Centres now has six sites across Ireland and the UK with a total potential capacity of up to 500MW.

Its first two sites in Ireland, DUB10 in Clondalkin and DUB20 in Arklow, have capacities of 90MW and 100MW respectively. They will be the subject of investment in the region of €1 billion, and will create more than 1,000 jobs.

Its third and fourth sites - DUB30 also in Arklow and DUB40 in Grange Castle - will have similar capacities and represent similar levels of investment.

Echelon believes that all data centre infrastructure should be powered by 100% renewable energy.

But it recognises that, in the short to medium term, halfway house solutions (such as on-site gas-fired peaking plants) may be necessary to support over-burdened grid infrastructure and to assist the transition to a wholly renewably-supplied grid system.

Echelon said its DUB20 site in Arklow will host a partnership with SSE Renewables which will bring 520MW of wind power into the grid, and will also be home to a biogas plant.