The group runs a data centre at Newport, Wales, with a capacity of 90MW, which is similar in size to Heathrow Terminal 5. It plans to add another four data halls at the tier-three facility after securing the package of mezzanine and debt investment from investors including Lombard and Finance Wales.

Next Generation Data hosts hundreds of computer servers for major companies. BT and Logica, along with IT service providers and public sector bodies, are the primary clients of the business.

Managing director Nick Razey says the company will add its own capital in addition to the investment to fund the project.

He says, ‘Since opening in Newport, we have experienced a rapid increase in demand from the corporate, government and cloud computing sectors. We are building two data halls to customer specification as well as some additional space because we are seeing many customer requests with short lead times.’

Tier-three data centres host around 80 per cent of all non-mission critical applications for clients. Last year, the company, which was founded by Razey and chairman Simon Taylor, was reportedly looking at floating on the London stock exchange sometime this year to fund the expansion plans.