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Evroc Aims to Build Localized, Hyperscale Data Centers in Europe

As a backlash against Big Tech-dominated public cloud continues, businesses are seeking alternatives like localized hyperscale data centers. Evroc, a Nordic startup company, has emerged from its stealth stage by securing €15 million ($16 million) in funding to establish fully localized, hyperscale data centers across Europe.

Background

Cloud computing had transformed almost every industry, but vendor lock-in, rising costs, security issues and lack of control over data processing have caused companies to retreat from cloud-first strategies. As many European companies have growing digital sovereignty agendas, international cloud services like AWS, Microsoft and Google have focused even more on providing data controls and storage closer to their clients. However, Evroc plans on going further by creating Europe’s first secure, sovereign, and sustainable hyperscale cloud and end the foreign dominance of the European cloud market.

Evroc’s Plan

Founded by serial entrepreneur Mattias Åström, Evroc plans to establish eight data centers, starting with an inaugural pilot center in Stockholm region by next year, with three software development hubs by 2028. They aim to raise additional €3 billion via equity, debt & public funding to build their first two data centers. According to Åström, these data centers will use next-generation energy-efficient technologies for eco-load balancing offered to customers on an opt-in basis, utilizing the most readily available and affordable renewable energy at the time.

Scrutiny

Evroc’s launch timing is significant due to increasing scrutiny of the European cloud market. Microsoft has faced severe criticism from smaller European cloud competitors and AWS for using its business software dominance to tether customers to its Azure cloud platform, while the UK is currently assessing anti-competition measures for AWS and Microsoft that make it difficult for companies to switch cloud providers. The “digital sovereignty” agenda push in Europe could position a young cloud start-up favorably. Evroc’s local development and R&D efforts are considered significant differentiators to its deeper-pocketed rivals, creating significant jobs across the continent.

Challenges

Creating a cloud infrastructure business from scratch and competing against trillion-dollar behemoths from the other side of the Atlantic is a Herculean task. Deciding on the locations requires a site-selection process, based on factors such as access to renewable energy, engineering talent, capital, and public authorities’ support. However, the opportunity, regulatory support, and lack of legacy compared to established cloud companies give Evroc some advantage.

The Vision

Evroc is tackling the problem ‘from scratch,’ focusing on hyperscale at the root of its business. It aims to build at least 100,000 servers in a single data center with hardware and software to store and manage data at that scale. Although there are some existing home-grown cloud computing options in Europe, Evroc is the first to focus on hyperscaling and building Europe’s first truly hyperscale cloud.

FAQs

What is Evroc?

Evroc is a Nordic start-up company that plans to establish localized hyperscale data centers across Europe, creating Europe’s first secure, sovereign and sustainable hyperscale cloud, and massively reducing Europe’s dependence on foreign cloud providers.

How much funding did Evroc secure?

Evroc secured €15 million ($16 million) in funding and additional €3 billion funds are expected from equity, debt, and various sources of public funding to help Evroc build the first two data centers.

What is eco-load balancing?

Eco-load balancing is a next-generation energy-efficient technology offered to customers on an opt-in basis, utilizing the most readily available and affordable renewable energy at the time, and aiding in power efficiency in data centers.

What is hyperscale in Evroc’s business vision?

Evroc focuses on hyperscaling, which means building at least 100,000 servers in a single data center with hardware and software to store and manage data at that scale, optimizing power efficiency, and storage.

How different is EVROC’s plan from the traditional European cloud providers?

EVROC plans to build Europe’s first truly hyperscale cloud, which is different from traditional European cloud providers since the traditional ones provide web hosting, domains, bare metal, etc., and have not had comparable scale as compared to global cloud providers, which EVROC aims to bring to Europe.

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