back to article Amazon's chomping at the Brits: UK to get AWS data center region

Amazon Web Services (AWS) is to build a UK region, alongside existing regions in Dublin and Frankfurt. A region is a high-level concept which is formed from multiple "availability zones," requiring several physical data centers. This represents a substantial commitment from Amazon. Amazon CTO Werner Vogels announced the new …

  1. Pen-y-gors

    Really handy

    UK data centre with everything freely available to the NSA *AND* GCHQ. Who wouldn't want that?

    How about an Icelandic region?

    1. Yet Another Anonymous coward Silver badge

      Re: Really handy

      A hugely expensive to build and operate data center in the UK.

      So huge losses reported by amazon.co.UK to the tax man, while the income from the data center is a huge profit for Amazon.co.CaymanIslands

      1. Crazy Operations Guy

        Re: "huge profit for Amazon.co.CaymanIslands"

        Given tax laws, I would assume that the money would be heading over to Dublin.

        I wonder what percentage of Dublin's tax revenue comes from companies that are paying Irish taxes because they're cheaper than tax in their own countries.

        1. WatAWorld

          Re: "huge profit for Amazon.co.CaymanIslands"

          Companies paying Irish taxes while extensively using services funded by taxpayers in responsible countries.

          Pay taxes in Ireland and depend on US and UK communications, transportation, health, educational, diplomatic and military services to enable their commerce.

          1. Steve Davies 3 Silver badge

            Re: "huge profit for Amazon.co.CaymanIslands"

            Except for the Transatlantic Cables that come ashore in the Emerald Isle. Ideal for sending all that lovely data to Virginia (not Water)

        2. Steve Davies 3 Silver badge

          Re: "huge profit for Amazon.co.CaymanIslands"

          The Dublin advantage may well only be temporary if the EU investigation finds that it can be considered State aid by the back door.

      2. Alan Beattie

        Re: Really handy

        That'd be amazon.lu ;)

    2. Dan 55 Silver badge
      Black Helicopters

      Re: Really handy

      It'd only be more blindingly obvious if they said they were opening it in Cheltenham. Amazon would be obliged to decrypt everything they've got the keys for if asked to.

      Don't these things also automatically replicate data to other regions in case they fall over? Perhaps after popular demand they'll need to put a tickbox on the control panel saying don't replicate to the UK.

      1. sysconfig
        Trollface

        Re: Really handy

        "It'd only be more blindingly obvious if they said they were opening it in Cheltenham"

        Surely they would get excellent connectivity there!

      2. Anonymous Coward
        Anonymous Coward

        Re: Really handy

        Suppose if I had encrypted data on a US region that either accidentally or intentionally replicated to the UK region. GCHQ has an interest in the contents, for whatever reason. So, can I be extradited and be forced to give up the key? This can't happen in my state since the 9th Circuit has found it unconstitutional. Still, ...

        Yeah, far fetched but I've seen some odder events.

        1. Gordon 10

          Re: Really handy

          Far more likely to happen the other way around tbh. The US-UK extradition treaty is far more favourable to US citizens vs UK citizens.

          Basically your lot can extradite on mere suspicion whereas the uk needs a virtual smoking gun.

      3. Valarian

        Re: Really handy

        "It'd only be more blindingly obvious if they said they were opening it in Cheltenham. Amazon would be obliged to decrypt everything they've got the keys for if asked to.

        Don't these things also automatically replicate data to other regions in case they fall over? Perhaps after popular demand they'll need to put a tickbox on the control panel saying don't replicate to the UK."

        The level of ignorance in these comments is staggering, but this epitomises it. Just to pick it apart:

        - Amazon don't have the keys. Instances are protected by a keypair the customer creates and owns; data storage is encrypted with whatever method (or none) the customer chooses to implement themselves, or in the case of EBS with an additional native method where, again, the keypair is created and owned by the customer. Even if the UK AWS Region was *inside* GCHQ the data would be as safe (or not) as the customer chooses.

        - No, AWS Regions DO NOT automatically replicate data between themselves. Availability Zones (AZs) *within* a Region do, to ensure resiliency in the event an AZ falls off the grid.

        Here's an idea: RTFM

        1. WatAWorld

          Re: Really handy

          I think it is perfectly charming that some people actually believe the published manuals and other sales material describing how their data is protected from spy agencies by fool-proof impregnable unbreakable measures.

          Regular Reg readers should all be aware by not that there is no such thing as an implementable encryption method that cannot be broken by state-funded spy agencies.

        2. Dan 55 Silver badge

          Re: Really handy

          If we're RTFM, why do we not know about cross-region replication?

          https://aws.amazon.com/about-aws/whats-new/2015/03/amazon-s3-introduces-cross-region-replication/

      4. Sirius Lee
        Unhappy

        Re: Really handy

        Dull comment. If you are going to add snide comments, make them original or failing that, at least funny.

        If you want to secure your data on S3 and in your instances, use a certificate. Sure, you will have to provide it if required by a warrant but your data will be secure from casual viewing even by the NSA and GCHQ.

      5. Alan Beattie

        Re: Really handy

        No, AWS is opening 2 or 3 UK datacentres, and they'll be readily configurable to replicate only to the UK. This is a major play on AWS' part to go after public sector accounts, though most UK companies are fine from a data protection perspective because they can already configure replication within the Dublin data centre, and soon Germany (which is also getting more than one).

  2. Stephen Booth

    Quicker to re-org than build a datacenter, also network

    "However, the fact that data resides in the UK may be false reassurance from a data protection perspective, since the US government argues that if it is in data centers belonging to US corporations, it still has right of access to that data."

    Under the current structure the US government claims this right. If Amazon wants the option in the future to relocate and escape this problem it can probably do so quicker than it can build a data-center.

    The other issue is the network. Amazon marketing will tell you that you can place your data anywhere in the world and access it over the internet. This won't work for anything latency critical and if everyone moves to amazon the owners of the trans oceanic cables will know exactly where to go to ask for more money.

    Everyone knows that Amazon gets huge economies of scale with large data-centers. There must be a point of diminishing returns after they get to a certain size (amazon must have the best handle on where this point is). Once you get to that point you open additional centers at places of good network connectivity (and cheap power) the uk scores highly on the first of these less so on the second. Maybe they they have some clever idea about how to power it.

    1. Anonymous Coward
      Anonymous Coward

      Re: Quicker to re-org than build a datacenter, also network

      Maybe they they have some clever idea about how to power it.

      Probably doesn't matter that much, unless there's places with similar low latency high bandwidth connectivity AND cheaper grid power - and if there were then that's where you'd build your data centre.

      UK energy policy is intentionally pushing end user prices ever upwards (eg the ridiculous price that our clueless government are offering for Hinkley Point C, the vastly inflated "feed in tariffs" for crappy solar PV, and the various subsidies for wind), and for this reason alone electricity costs will climb year on year for the forseeable future, regardless of wholesale gas, coal or oil prices. But so long as all competing data centres are subject to the same costs, it just becomes a pass through to the DC customers.

      There's a few things you can do to reduce DC energy costs, like running your standby generators across peak demand periods, bidding into capacity and auxiliary services markets, but this usually means giving control of your standby plant to somebody else, could become a diversion from the core business, involves far more regular cycling of the engines with impacts on maintenance costs and reliability. If you're running a Tier 4 data centre, the chances of this really affecting your uptime are really, really low, but why go to all the trouble of export connections and metering to make what is a fairly paltry additional income? It'd be like connecting your car alternator output to an inverter and selling it to the grid - entirely feasible, an additional income on an asset your already own, but really not worth the effort.

      Something AWS and the big boys can do to reduce power costs is load shift less critical tasks onto data centres elsewhere that aren't in peak power periods, but the task needs to be suitable for high latency, and if you're taking tasks out of a data centre then it has an impact on technical and financial asset utilisation.

      1. Gordon 10
        Thumb Down

        Re: Quicker to re-org than build a datacenter, also network

        Think you're overstating it slightly. Amazon probably buy their electricity on the wholesale market, and probably have all sorts of hedging strategies that give them an effective price well under that of retail.

        1. Anonymous Coward
          Anonymous Coward

          Re: Quicker to re-org than build a datacenter, also network

          and probably have all sorts of hedging strategies that give them an effective price well under that of retail.

          I work in the energy sector, I can assure you that your presumptions are right about big power consumers purchasing wholesale and hedging themselves are 100% right. But that actually makes my argument stronger because these big consumers are exposed to the full heat of the wholesale power market, and (again, unlike domestic users) they take the full pain of DNO charging structures. You can hedge, but that costs money, and in the long term it has to net off - a bit like domestic car insurance, that on a long term basis has to cover the average claim cost and turn a profit for the insurer).

          The price they pay may or may not be under the retail level, the key driver is the profile of their demand. If data centre demand had a similar load profile to overall electricity system demand, they'd pay a very similar price to retail, if they have flat demand curve its a lot cheaper, if they can bias usage to off peak then they'll have really cheap power.

          That is, until the ever growing renewable generation inputs start to become the wholesale price setter. Then your wholesale price becomes partially randomised, and any fixed demand profile is worth less than a responsive demand profile. So you'd get much cheaper average power prices for a data centre that agreed to stop running when there was no wind, for example, but the overall economics of that data centre might be a real problem for the owners.

      2. WatAWorld

        This wikipedia article has a table of electricity costs by country

        If energy prices were the only important factor data centers would locate in countries with cheap renewable hydro electric power, like most parts of southern Canada (although Canada is also a Five Eyes country).

        I'm thinking they also want to minimize communications distances to the main parties they communicate with, and simply GCHQ is a bigger user than CSEC, to say nothing of the locations of their paying customers.

        This wikipedia article has a table of electricity costs by country:

        https://en.wikipedia.org/wiki/Electricity_pricing#Price_comparison

        There is also the tables here:

        http://www.statista.com/statistics/263492/electricity-prices-in-selected-countries/

        http://www.theenergycollective.com/lindsay-wilson/279126/average-electricity-prices-around-world-kwh

        There is also this table of industrial (wholesale) energy prices:

        http://www.isi.fraunhofer.de/isi-wAssets/docs/x/de/projekte/Comparison_industrial_electricity_prices_final.pdf

        As you can see, Amazon could reduce its electricity costs by over 60% by locating outside the UK.

  3. Alan Denman

    Beats paying any taxes!

    Just donating money to political causes also works.

    Cynical me!

  4. Roq D. Kasba

    GCHQ/NSA is a red herring

    Better to assume they'll have your data anyway, and get on with assuming a mega corp isn't going to do your work for you.

    As for adding a UK centre, why not? Amazon make money from AWS by offering a good service and price, and this'll just make the UK speeds better.

    1. alpine

      Re: GCHQ/NSA is a red herring

      Speeds are reasonable, but it's always bugged me (!) that their search engine is awful compared to Ebay. Why don't they do something about that first.

      1. Roq D. Kasba

        Re: GCHQ/NSA is a red herring

        As I read it, this is about locating an AWS cloud presence in the UK, rather than anything to do with their retail division.

        But yes, their search could be better ;-)

  5. x 7

    Editors, excuse me, but by placing a photo of a Cotswold village at the head of this article are you trying to kick-start a campaign by Gloucestershire NIMBYs to prevent the site from being built there? Was this pure chance in selecting a photo, or are you really trying to make things hard for GCHQ? After all they are in Gloucestershire........

    Carry on like that and El Reg is going to be in the firing line

    1. phuzz Silver badge
      Thumb Up

      It would be great if Amazon moved in round there! They'd be forced to upgrade the connectivity and maybe people could get better than 1Mb/s ADSL.

      (I'm trying to work out where the photo is, one of the Swells or the Slaughters would be my guess *edit* it's Norton)

  6. WatAWorld

    Amazon should take shareholder value seriously and remove data centers from 5 Eyes countries

    If Amazon were motivated by shareholder interests Amazon would take customer concerns seriously remove data centers from Five Eyes countries. Amazon would only be building data centers in countries outside the Five Eyes, because data centers outside of the Five Eyes countries (and outside of Russia and China) are worth more to customers than data centers inside Five Eyes countries (and Russian and China).

    So what is motivating Amazon?

    Why doesn't Amazon.com care about shareholder value?

    Why doesn't Amazon.com care about protecting customers from state sponsored corporate espionage?

    1. g e

      So what is motivating Amazon?

      Clue: Profit

      Catering to non five-eyes demographics won't increase profit. Most people still think that's a conspiracy yarn, despite Snowden.

  7. Sirius Lee

    Referendum hedge?

    Another possible motivation for putting a data centre within the UK is a hedge against the UK opting out of the EU.

  8. mahdump

    Host it in sunny Spango Valley in Greenock- Old IBM site . Big empty site with its own train station

  9. Anonymous Coward
    Anonymous Coward

    For UK Govt Agencies?

    Amazon has a Govt. Cloud in the USA. Perhaps this buildup is to try to capture that possible market share?

    Maybe another redundancy zone? And obviously profit. They would not invest in another datacenter if their was no $ (sorry, don't know how to add British pound symbol) to be made.

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