XTX Markets Defies Industry Trend with Massive Data Center Construction in Finland

The UK high-speed trader XTX Markets is constructing a massive data center in Finland to handle $250 billion worth of daily deals, defying the trend among financial services groups to outsource IT to Silicon Valley tech giants. The data center, located in the Kajaani district in central Finland, will have a capacity of 250 megawatts and will take about two years to complete. XTX's decision to build its own data center is in contrast to other financial firms that are turning to Big Tech for data management, showcasing the company's emphasis on processing power.

Key Takeaways

• UK high-speed trader XTX Markets is building a vast data centre in Finland to handle $250bn worth of deals daily, diverging from the trend of offloading IT to Silicon Valley.
• The data centre, with a 250 megawatt capacity, underscores the importance of processing power for XTX, which employs over 200 people but no human traders and makes markets in various assets.
• Nordic countries are popular for hosting data centres due to cheap electricity and cold climates, reducing the need for server cooling.
• XTX's use of 25,000 graphics processing units highlights the demand for processing power amid the artificial intelligence boom.
• XTX, founded in 2015, has become one of the UK's most profitable private companies and among the world's biggest proprietary trading firms, making a record £1.1bn profit last year.

News Content

XTX Markets, a UK high-speed trader, is constructing a massive data center in Finland to handle its daily $250bn worth of deals. The company's decision to build its own data center goes against the trend of financial services groups offloading IT to big technology groups in Silicon Valley. The data center will increase XTX's capacity to handle vast amounts of compute, emphasizing the importance of processing power for the company's complex algorithms and deep learning models.

XTX's move contradicts the trend among financial services companies, as it opts to build its own data center instead of turning to Big Tech for assistance in managing the extensive data that powers global capital markets. The company's expansion highlights the surging demand and importance of processing power, as it uses 25,000 graphics processing units for its research, underlining its significance in running algorithms in the artificial intelligence boom. Founded in 2015 by mathematician Alex Gerko, XTX has become one of the UK's most profitable private companies and one of the world's largest proprietary trading firms, making a record £1.1bn profit last year.

Analysis

XTX Markets' decision to build a massive data center in Finland reflects the increasing demand for processing power in the financial services industry. The company's move contradicts the prevailing trend of offloading IT to big technology groups, underlining a shift towards in-house data management. This decision may impact traditional technology service providers as financial firms like XTX increasingly build their own infrastructure. In the short term, this move may lead to increased operational costs but in the long term, it could result in greater control and flexibility for XTX. The surge in demand for processing power and AI capabilities indicates the growing significance of technology in propelling global capital markets.

Did You Know?

• XTX Markets: A UK high-speed trader that is constructing a massive data center in Finland to handle its daily $250bn worth of deals. The company's decision to build its own data center goes against the trend of financial services groups offloading IT to big technology groups in Silicon Valley.
• Data Center for Processing Power: XTX's move contradicts the trend among financial services companies, as it opts to build its own data center instead of turning to Big Tech for assistance in managing the extensive data that powers global capital markets. The company's expansion highlights the surging demand and importance of processing power, as it uses 25,000 graphics processing units for its research, underlining its significance in running algorithms in the artificial intelligence boom.
• XTX Markets' Success: Founded in 2015 by mathematician Alex Gerko, XTX has become one of the UK's most profitable private companies and one of the world's largest proprietary trading firms, making a record £1.1bn profit last year.