Apple’s Crazy-Expensive New Data Centers Will Be Totally Green

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Apple Inc. said it would spend 1.7 billion euros ($1.9 billion) to build two data centers in Europe that would be entirely powered by renewable energy and create hundreds of jobs.

The investment, Apple’s biggest ever in Europe, will power Apple’s online services, including the iTunes Store, App Store, iMessage, Maps and Siri for customers across Europe.

The new centers are intended to meet what is expected to be a massive rise in demand for remote data storage in the medium-term, as both consumers and businesses come to depend more and more on Cloud-based technology.

The investment is set to be evenly divided between Athenry in Ireland and Viborg in Denmark, with the Irish government confirming that €850 million would be spent in Ireland. The two data centers are expected to begin operations in 2017.

“We’re thrilled to be expanding our operations, creating hundreds of local jobs and introducing some of our most advanced green building designs yet,” CEO Tim Cook said in a statement.

In a sign of how important Apple’s investment in Denmark was, the country’s trade and development minister issued a statement mirroring that of the iPhone maker’s, adding the two data centers would be among the largest in the world.

Ireland’s government also reacted to the announcement, saying 300 jobs would be added in the county of Galway during the multiple phases of the project, a boost as it seeks to cut the unemployment rate below 10 percent this year.

“As the Government works to secure recovery and see it spread to every part of the country, today’s announcement is another extremely positive step in the right direction,” Irish Prime Minister Enda Kenny said in a statement.

The tech blog Gigaom speculated that the decision could boost the company’s appeal to business customers, which are more inclined to insist on local storage of data for their software solutions, particularly since the disclosures made by NSA whistleblower Edward Snowden. In Germany in particular, the Snowden leaks have made public and government opinion openly suspicious of U.S. companies abusing the vast amount of data they hold.

A spokesman for Apple declined to comment on whether issues around privacy and regulation had played any part in the decision to locate the centers in Europe, rather than the U.S..

In addition to privacy and legal issues, the biggest concerns that affect such choices usually include things like electricity prices and low network latency (the ability of local internet infrastructure to handle massive traffic volumes at high speed), according to analysis by consultants Gartner Inc. Gartner also points out that locating centers in a colder environment (and both Ireland and Denmark fit that description) can cut running costs significantly, given the amount of power needed for cooling.

Denmark also has some of the lowest electricity costs in the E.U., thanks to massive (and generously subsidized) investment in wind power in recent years which means that the country is often a net exporter of electricity.

Ireland’s electricity prices are only in line with the E.U. average, according to Eurostat data, but the company already has an extensive footprint in the country after previous investments. The company’s relations with Ireland have, however, come into question. The E.U. last year opened an inquiry into Apple’s tax arrangements in Ireland, alleging that its tax treatment was so generous as to constitute illegal state aid. That investigation is still ongoing.

See Steve Jobs’ Legacy in 16 Photos

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1976 Apple I was Apple's first computer, which became obsolete within a year. Today, they are auctioned off as collector's items.Justin Sullivan—Getty Images
Steven Jobs
1977 Apple II was the follow up to the Apple I computer. Apple II proved highly successful and spawned several variations.Ralph Morse—The LIFE Images Collection/Getty Images
Apple computer Chrmn. Steve Jobs (R) and technician w. new LISA computer during press preview.
1983 Lisa was Apple's office computer that was the first personal computer to use a graphical user interface. It was a commercial flop, largely because it retailed for a whopping $10,000. Ted Thai—The LIFE Picture Collection/Getty Images
Steve Jobs ist tot
1991 NeXT Station was a workstation computer manufactured by NeXT, a computer company Steve Jobs founded in 1985 after he was forced out of Apple. After Apple acquired NeXT in 1996, Jobs rejoined Apple. Kristy MacDonald—dapd/AP
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1995 Pixar's Toy Story was the film studio's first feature film in 1995. Pixar had spun out from a larger graphics corporation in 1986 with funding from Steve Jobs. Alan Dejecacion—Getty Images
Foreign media photograph and film the new Apple Co
1998 The iMac was originally released in 1998, and it was the first Mac computer to have a USB drive but no floppy disk. Many media outlets heralded it as a game changer. Over two million were sold in two years. John G. Mabanglo—AFP/Getty Images
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1999 The iBook was a line of laptop computers designed for use in schools. The computer, called the "iMac to go," was a huge hit with several upgrades over the years. Ted Thai—The LIFE Picture Collection/Getty Images
San Francisco Ca Steve Jobs Apple's Interim CEO Introduces The Macintosh
1999 The Power Mac G3 was a personal computer in the Power Macintosh line. Its upgraded hardware meant it was faster than most other computers on the market. Alan Dejecacion—Getty Images
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2001 Apple opened its first Apple Stores in 2001, with the original two stores in Virginia and California. On the opening day, thousands of Apple fans stood in line and collectively spent over half a million dollars. Justin Sullivan—Getty Images
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2003The iTunes Store is Apple's online digital media store that redefined the music purchase experience and became a runaway success within years. By 2008, it had become the largest music vendor in the U.S. Ian Waldie—Getty Images
Steve Jobs at MacWorld
2001The iPod followed the release of iTunes and other consumer-facing software. It offered data storage and a sleek design, and soon became the nation's go-to portable music player. Gabe Palacio—Getty Images
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2006 Macbook Pro was Apple's first computer to use Intel Core processors, replacing PowerBook computers. The Macbook Pro line is Apple's latest laptop collection. Justin Sullivan—Getty Images
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2005 The Mac Mini was Apple's first consumer-targeted computer to ship without a display, keyboard or mouse, intended to minimize the space taken by a desktop computer.Justin Sullivan—Getty Images
Apple chief executive Steve Jobs unveils
2007 The first iPhone was released after years of speculation that Apple would produce a smartphone. It was known for its large touch screen and finger-touch method, as opposed to using a stylus. It was marketed under the slogan "This is only the beginning." Tony Avelar—AFP/Getty Images
Apple Unveils New Software For iPhone And iPad
2008 The App Store is Apple's online marketplace for downloading and developing apps. It was released alongside its iPhone 3G, and both proved to be massive successes. The App Store logged over 10 million downloads on the first weekend.Justin Sullivan—Getty Images
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2010 The iPad is an Apple tablet computer that met mixed reviews, as users were not sure if it was intended to replace or supplement laptop use, though many praised its ability to connect to WiFi or 3G. That year, the iPad became the leader in the tablet computer market. Justin Sullivan—Getty Images

This article originally appeared on Fortune.com.

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