XTX Markets to Build a Data Centre in Finland to Increase Trading Capacity
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XTX Markets, an online trading company, is planning to build one of the largest data centers in Finland, to increase its trading capacity.
The decision to build this data center comes amid financial institutions abandoning traditional trends that require them to outsource their IT needs from some of the largest technology firms in Silicon Valley.
XTX Markets to Create a Date Center in Finland
The Financial Times revealed that XTX Markets, which is one of the largest market makers in London, is planning to set up a data center with a capacity of 250 megawatts in the Kajaani District in Finland.
— XTX Markets (@xtxmarkets) April 12, 2024
The first phase of this data center will include the facility having computing capabilities of 22.5 megawatts. This capacity will see the data center having more capabilities than it previously did, which will improve trading experiences.
XTX is also setting up a data center in Finland that will take advantage of the affordable electricity and the cool climatic conditions in the country. Finland has been one of the most favorable destinations for data hosting companies.
Data centers that position their operations in Finland do not need to invest in power-intensive cooling systems because the climatic conditions help maintain the cool systems.
XTX is now planning to create its own data center, shedding light on the decision made by the firm to have autonomy over the technological infrastructure. By creating this data center XTX Markets will be operating under a different model from the one used by competitors such as Citadel Securities.
A majority of competitors at XTX Markets are using the cloud services used by companies such as Google to access data storage and conduct algorithm testing.
XTX Markets is now using high processing power to complete algorithmic trading strategies. The trading company uses 25,000 graphics processing units to support its operations.
While commenting on this development, the Chief Technology Officer at XTX Markets, Joshua Leahy, opined that the company would use the Kajaani site to increase its computing capacity. Data centers operating in Europe had limited capacity amid high demand, and the platform now wanted its offering.
Advancing Technological Research
XTX Markets launched an AI program in New York earlier this year. This program seeks to expand research in algorithmic trading by bringing finance and AI technology together. It also seeks to help investors access new opportunities that border between finance and machine learning.
XTX Markets is also using the AI Residency Program to advance research into different areas. This program plans to create machine learning algorithms targeting the financial industry.
