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A PRIME LOCATION FOR DATA CENTERS


LITHUANIA: IN THE CENTER OF EUROPE

NORTH ATLANTIC OCEAN

SWEDEN

FINLAND

NORWAY Stockholm

RUSSIA BALTIC SEA

NORTH SEA

52 les mi

0

IRELAND GREAT BRITAIN

NETHERLANDS Amsterdam

1 000

LATVIA LITHUANIA

iles

Moscow

m 560

BELARUS

miles

s mile

50 GERMANY 9

Frankfurt

ESTONIA

POLAND UKRAINE

ATLANTIC OCEAN

FRANCE ITALY

BLACK SEA

SPAIN

MEDITERRANIAN SEA

European Union


Accessibility Lithuania in the Center of Europe

Kaunas Airport (22 miles away )

Size:

25,212 mi 2

Population:

2.98 million

Vilnius miles away ) Capital: Airport (53Vilnius

London

19

Dominant foreign languages: Moscow

Frequency Lithuanian (flights per week ) English, Russian, German, Polish24

Frankfurt

5

Membership: London

EU, NATO, WTO 23

Politics: Paris

Parliamentary democracy 15 in 1990 since independence

Currency: Copenhagen

Major destinations

Frequency (flights per week )

Facts and figures

Official language: Major destinations

21st freest economy in the World1

Frankfurt

Lithuanian Litas14 (LTL) Pegged to EUR 3.45 LTL / 1 EUR 14

17th out of 189 world economies for ease of doing business2

Helsinki 3 Real GDP growth: 2013 Warsaw2012

3.3% 3.7%

3 Brussels Inflation: 2013 2012 Stockholm

1.2% 3.2%

Easy to do business

14 14 12 11

Amsterdam

7

Vienna

7

Berlin

6

Source 1 : Heritage Foundation, Economic Freedom Index, 2014 (evaluates 10 components of economic freedom, assigning a grade in each using a scale from 0 to 100, where 100 represents the maximum freedom. The 10 economic freedoms are grouped into 4 broad categories: Rule of Law (property rights, freedom from corruption); Limited Government (fiscal freedom, government spending); Regulatory Efficiency (business freedom, labor freedom, monetary freedom); and Open Markets (trade freedom, investment freedom, financial freedom) Source 2 : World Bank Doing Business Report, 2014 (The index ranks economies from 1 to 183 calculating the average of the percentile rankings of starting a business, dealing with construction permits, registering property, getting credit, protecting investors, paying taxes, trading across borders, enforcing contracts, resolving insolvency and getting electricity) Source 3 : Statistics Lithuania, 2013

Sources: Kaunas and Vilnius airports


Kruonis Technology Park Data center park containing the most reliable power supply 185 acre ready-to-build site next to the 900 MW Kruonis Hydro Pumped Storage Power Plant (HPSPP) Highest level of physical security, dark fiber on-site, and redundant cooling solutions


LATVIA

SIAULIAI

KLAIPEDA

PANEVEZYS

BALTIC SEA

KAUNAS

RUSSIA

64 miles

VILNIUS

BELARUS KRUONIS TECHNOLOGY PARK

POLAND


KRUONIS TECHNOLOGY PARK EVA

Kaunas LAGOON

185 acres

STR

KRUONIS HPSPP

KRUONIS TECHNOLOGY PARK

KRUONIS HPSPP RESERVOIR

330 kV single 330 kV double 110 kV double 330 kV double (Link to Poland, in 2015) Access to cooling water Probable maximum flood


Overview

185 acres ready-to-build greenfield site Outstanding electricity grid for critical facilities access to 100 MW and more of power load Special Economic Zone status, which provides corporate tax incentives Site is ready for construction – all documentation (conditions and special requirements) is already issued Site is adjacent to highly secured national strategic asset site Kruonis HPSPP Lithuania has low exposure to natural hazards, i.e. earthquakes, storms, floods, droughts, sea level rise


Summary


Stable Power Supply Resilient Power Infrastructure on Site Renewable Energy Fiber Network Nordic Climate and Cooling Solutions Secure Location Competitive Talent Pool Leading ICT Infrastructure Financial Incentives Accesibility


STABLE POWER SUPPLY

FINLAND

LINK TO FINLAND 1,000 MW

INTERLINK BRELL

Belarus – Russia – Estonia – Latvia – Lithuania ring

SWEDEN ESTONIA BALTIC SEA

LATVIA

LINK TO SWEDEN

LITHUANIA

RUSSIA

BELARUS

Under construction (700 MW), operational in 2016

LINK TO POLAND Under construction (500MW), operational in 2015

POLAND

UKRAINE Hydro/Nuclear/Thermal power plants


Reliable and Diversified Electricity Network Resilient infrastructure Lithuania has not experienced any simultaneous power outage BRELL (Belarus-Russia-Estonia-Latvia-Lithuania) ring prevents power transmission failures Estlink connection to Finland (350 MW) was expanded to 1,000 MW at the beginning of 2014 Electricity connections under construction: link to Sweden (700 MW, operational in 2016) and Poland (500 MW, operational in 2015)

Sufficient and expanding generation capacities Current total generation capacity is 4,304 MW, peak demand is 1,654 MW. Lithuania imports most of its demand electricity to take advantage of spot pricing

Competitive internal market Lithuania has joined Nord Pool Spot – the largest market for electricity in the world 20 independent electricity suppliers operate on the local market


RESILIENT POWER INFRASTRUCTURE ON SITE

LATVIA

PANEVEZYS

KLAIPEDA

VISAGINAS

BALTIC SEA

KAUNAS

RUSSIA

BELARUS

VILNIUS KRUONIS TECHNOLOGY PARK

POLAND

Wind park

330 kV tranformer substation

330 kV line

Prospective wind park

330 kV prospective substation

440 kV prospective line

Heat power plant

330 kV switchyard

330 kV prospective line

Hydro power plant

330 kV prospective switchyard

330 kV prospective cable

Prospective nuclear power plant

110 kV transformer substation

110 kV line


Resilient Power Infrastructure on Site Site is at the core of Lithuania’s power grid Imediate access to 10 MW of power load already installed at the site, which is expandable to 100 MW and more Five redundant 330 kV lines and six 110 kV lines available at the site

Strategic location for critical facilities Next to Kruonis HPSPP (900 MW capacity) 12 miles away from Kaunas Hydroelectric Power Plant (101 MW capacity)


RENEWABLE ENERGY


Renewable Energy Certified Green Energy Certfied green energy for Data Centers Lithuania provides the opportunity to purchase electricity from Kaunas Hydro Power Plant with Renewable Energy Guarantees of Origin. Possibility to invest in ready-to-build wind parks close to the Kruonis Technology Park

Developing green energy share in Lithuania Lithuania is targeting a 23% renewable energy share by 2020 (currently ~22%) By 2020 Lithuania aims to have 500 MW of installed wind energy capacity, at least 355 MW of biomass, 141 MW of hydro energy and more than10 MW of solar


FIBER NETWORK

Fiber Network on Site Links with European fiber optic hubs (Finland, Germany, Russia and others) can be easily established via partner networks SWEDEN

Dark fiber providers on site: DLC on site

Stockholm 2016

Copenhagen

GREAT BRITAIN

NETHERLANDS

RUSSIA

Frankfurt

Warsaw Prague

Moscow

LATVIA LITHUANIA 2015

POLAND

GERMANY

Paris

Lithuanian Railways 15 miles away

BALTIC SEA

Berlin

Amsterdam

London

Skaidula 9.4 miles away

Tallinn

ESTONIA Riga

NORTH SEA

IRELAND

Sankt Peterburg

Helsinki

NORWAY

TEO 9.4 miles away

RAIN 2.4 miles away (On site, in 2015)

FINLAND

Minsk

BELARUS Kiev

UKRAINE

FRANCE Milan

BLACK SEA

ITALY Madrid

Rome

SPAIN

MEDITERRANIAN SEA


LATVIA LITHUANIA

sweden

TEO DLC

Telia Latvija, TeliaSonera Construction will be finished in 2015

sweden

LITHUANIA

LATVIA

DLC TEO Skaidula

Lattelecom, Latvenergo Lattelecom Lattelecom, Latvian Railways, Latvian RTC, Latvenergo

Lithuanian Railways

Latvian Railways

PANEVEZYS KLAIPEDA

BALTIC SEA

RUSSIA

LITHUANIA

RUSSIA

DLC TEO

TransTeleCom, Rostelecom, TransTeleCom, TransTeleCom (x2)

Lithuanian Railways Skaidula

KAUNAS

VILNIUS KRUONIS TECHNOLOGY PARK

TIS Dialog

LITHUANIA DLC TEO Skaidula Lithuanian Railways Alternative connection through RAIN

POLAND

BELARUS

POLAND

LITHUANIA

BELARUS

TPSA, Hawe, Exatel Hawe, Exatel, Orange Polska Hawe, Exatel, TK Telekom TK Telekom

DLC

Beltelecom

TEO

Beltelecom

Lithuanian Railways

Belarusian Railways


NORDIC CLIMATE AND COOLING SOLUTIONS


Lithuania's Nordic Climate is Ideal for Data Centers Cost effcient cooling – the average temperature is 44.6°F Jan

Feb

Mar

Apr

May

June

July

Aug

Sept

Oct

Nov

Dec

26.8

16.6

35.4

45.9

58.9

59.5

66.9

62.7

55.9

45.3

40.6

24.3

Average Temperature in °F

Water for cooling The best option is to use water from the Kaunas lagoon which is 110-330 yards away from the site The Kaunas lagoon holds 121.5 billion gallons and has an area of 15,690 acres. The Kruonis HPSPP upper reservoir holds 12.6 billion gallons and has an area of 756 acres


SECURE LOCATION

Extreme Risk High Risk Medium Risk Low Risk Very Low Risk No Data Available

Source: World Risk Index (developed by the United Nations University Institute for Environment and Human Security), 2014


Secure Location A location with minimal environmental hazards Lithuania is ranked as one of the safest locations in the world on The World Risk Index

The World Risk Index consists of various indicators Lithuania has a low exposure to natural hazards, i.e. earthquakes, storms, floods, droughts, sea level rise The country has a low degree of susceptibility, i.e. is less likely to suffer harm and damage in the event of a natural hazard It has strong coping capacities, such as social and institutional resilience to minimize the impact of natural hazards Lithuania also boasts adaptive capacities, established measures and strategies to enable communities to adapt to and address potential consequences of natural hazards and climate change The crime level in Lithuania is 2 times lower than the EU average

Consolidated political stability Lithuania is a member of the European Union, NATO and the World Trade Organisation All Lithuanian laws are in line with EU Directives Data protection laws mirror all basic requirements of EU Data Protection Directive 95/46/EC Lithuania has concluded over 50 Bilateral Investment Treaties (BITs) with other states. BITs provides assurance and a high degree of certainty for foreign investments


COMPETITIVE TALENT POOL


Competitive Talent Pool Annual Gross Salary (USD)

1

IT talent pool

Head of IT

44,600

IT Manager

35,400

1st in the EU for the proportion of individuals aged 16-24 who have obtained ICT skills through formal education 2

Engineering Manager

29,200

24,500 employed IT professionals

Help Desk Supervisor

26,200

Network Engineer (3+ years experience)

25,600

Technical Team Leader

23,100

Customer Service Team Leader, Multilingual

23,100

Maintenance Engineer

23,000

Electrical or Cooling Engineer

19,200

Customer Service Agent (3+ years experience), Multilingual

17,000

6,200 IT students in total studying at seven universities and fourteen colleges, generating over 1,750 IT graduates per year 1st in the EU for mathematics, science and technology graduates3

Labor Costs Labor costs in Lithuania more than four times lower than in other EU countries3 3rd lowest salaries in the EU3

Source 1 : Alliance for Recruitment, 2013 Source 2 : European Commission Source 3 : Eurostat, 2013


LEADING ICT INFRASTRUCTURE

Leading ICT Infrastructure 1st

in the World Competitiveness Rankings for communication technology 1

1st

in the EU for Internet upload speed

2nd Fastest Internet Download Speed Worldwide (Mb/s) 3 Hong Kong

76.2 61.6

Singapore Romania

2nd in the EU for the Internet donwload speed 3rd in the EU for the share of fixed broadband lines equal to or above 30 Mbps 2 The capital city of Vilnius has the fastest Internet upload speed in Europe 3 The most up-to-date ICT technologies (3G mobile communications infrastructure, mobile WiMAX 4G Internet etc.) fully imple mented and functioning in the entire country

57.6

South Korea

51.6

Switzerland

50.0

LITHUANIA

43.1

Sweden

41.7

Japan

41.6

Netherlands

40.8

Taiwan

39.9

3rd Fastest Internet Upload Speed Worldwide (Mb/s) 3 Hong Kong

64.5

Singapore

47.7 44.2

South Korea LITHUANIA

38.5

Macau Latvia Romania

Source 1: IMD, The Word competitiveness yearbook, 2013 Source 2: FFTH Council Europe Source 3: Ookla Net Index, April, 2014

35.8 30.2 29.4

Republic of Moldova

29.4

Japan

29.0

Denmark

26.2


FINANCIAL INCENTIVES


Financial Incentives Special Economic Zone status, which provides companies with the following advantages :

No corporate tax for six years (15% is the standard rate) 50% discount on corporate income tax for the following 10 years No real estate tax

Funds allocated for further infrastructure development at Kruonis Technology Park:

Infrastructure has been developed and upgraded (access road upgrade, water supply, and related infrastructure) Land plots can be designed according to a company’s requirements and future plans for expansion


IMPORT DUTIES IN LITHUANIA


Import Duties in Lithuania Import duties applied to individual groups of goods from outside the EU Groups of goods

Conventional rate of duty (%)

Lithuania has eliminated import duties for Intra-Community trade

Uninterruptible power supply

0.0 - 3.3

Servers

Free

A unifed system of import duties has been established for all European Union countries

Cables

0.0 - 5.2

Fire Protection Systems

1.7 - 6.5

Conditioning systems

2.2 - 2.7

Electric power generator

2.7 - 4.7

Import duties are applied only in cases where goods are imported from third countries Import duty depends on the type of imported goods, and the duty rate depends on the state from which the goods are imported


ACCESSIBILITY

LATVIA COPENHAGEN 1:05

PALANGA SIAULIAI

KLAIPEDA

PANEVEZYS

BALTIC SEA

London Copenhagen Frankfurt MOsCOW Paris

London 2:50 Frankfurt 2:10

KAUNAS

RUSSIA

64 miles

2:50 1:30 2:00 1:25 2:35

VILNIUS

BELARUS KRUONIS TECHNOLOGY PARK

POLAND


Accessibility Kaunas Airport (22 miles away ) Major destinations

Frequency (flights per week )

Vilnius Airport (53 miles away ) Major destinations

Frequency (flights per week )

London

19

Moscow

24

Frankfurt

5

London

23

Paris

15

Copenhagen

14

Frankfurt

14

Helsinki

14

Warsaw

14

Brussels

12

Stockholm

11

Amsterdam

7

Vienna

7

Berlin

6

Sources: Kaunas and Vilnius airports


CONTACT

Invest Lithuania +370 52 627438 www.investlithuania.com info@investlithuania.com


Lithuania: A Prime Location For Data Centers