A new venture led by Verne Global, a British company, will create the world’s first data centre powered exclusively by hydro-electric and geothermal energy.

Under-sea cables have been laid to combat Iceland’s previous lack of connectivity, and Iceland hopes to reposition itself as the green data centre capital of the world.

Cold air is pumped from outside to cool the equipment – this use of natural resources not only makes not only it green, but cheap. The centre is neighboured by a geothermal power station that creates energy from the ultra-hot volcanic ground beneath.

Iceland’s Foreign Minister Ossur Skarpheoinsson said: “This is the beginning of a new chapter of the industrial life of Iceland. When something is new, you need someone to go first. Verne is a pioneer. It is an icebreaker.”