Demand strong, says Telecity

The data centre operator Telecity said that demand remained strong across its European markets and its cash flows would enable it to start paying a dividend next year.

The group, whose facilitiesare located in Europe's major business centres such as London and Paris, is seeing growth from cloud computing and social networking.

Telecity, which plans to nearly double its capacity to 124MW over the next four years, also announced an additional 6MW of capacity at the Dublin site it acquired in August.

Shares in the company, which floated in 2007, have risen by 27 per cent since the start of 2011. They rose 2.5p to close at 600p yesterday.