Birmingham businesses will see a new £60 million data centre open in March next year.
The Data City Exchange data centre is a 10MW (megawatt) modular and scalable facility which promises to use 70 percent less energy than traditional data centres, with the help of free air cooling and the use of renewable energy sources and carbon footprint reduction technologies.
The new data centre has been welcomed by Birmingham City Council. Mark Barrow, strategic director of development at the council, said: "Birmingham is increasingly being seen as one of the digital hubs of the UK and this type of investment will help further raise Birmingham's profile across the rest of Europe.
"The new data centre will create significant employment opportunities across the city and help support some of the local businesses in the area."
Milton Keynes will be the site of another new Data City Exchange data centre next year and other sites are being chosen elsewhere in Europe, said the company.
The internal data centre market will see "accelerated growth" in 2013 despite the advance of cloud connectivity and hosting technology, says analyst firm Ovum.
In its "2013 Trends to Watch: Data Centre Technology" report, it says firms will focus more on data centre cost-savings, and more efficient internal IT delivery methods such as virtualisation and software-defined networks (SDNs).