Concerns over power shortages led to Verizon Business dismissing London as the site for its flagship datacentre.
Verizon Business was worried about the availability of power because of the Olympic Games to be hosted in London next year. The company chose Amsterdam instead.
By submitting your email address, you agree to receive emails regarding relevant topic offers from TechTarget and its partners. You can withdraw your consent at any time. Contact TechTarget at 275 Grove Street, Newton, MA.
The datacentre was opened by Terremark, the global cloud services provider recently acquired by US telecoms giant Verizon, as its flagship site. The site was one of around 50 datacentres across Europe.
Hermann Oggel, president of European business at Terremark, told delegates at Verizon's annual business conference that the choice of locations was between London and Amsterdam.
"London was full with the Olympics, with no power. And power is a big issue," Oggel said. "We spoke to utility companies in London and looked at premises, but found it economically better to manage from Amsterdam."
The Amsterdam-based Network Access Point (NAP) will have capacity for 46 megawatts of power. It will have the highest level of performance power and connectivity across the company's European datacentre estate. The site in Amsterdam was also chosen as it is close to one of the main landing ports of fibre from across the Atlantic.
Verizon is positioning itself to take a slice of the cloud market, which it predicts will grow by $90bn in the next four years. The company said it has invested $2bn (£1.3bn) in the cloud space so far this year. This includes its $1.4bn (£880m) acquisition of Terremark in January and cloud software technology company CloudSwitch last month. Verizon said it was not ruling out further acquisitions.
Verizon said it would concentrate on a partnership approach to enter new markets. It will work with applications companies, systems integrators and organisations that don't have an IT focus but touch customers in some way in order to maximise revenue growth, the company said.