Apple share price up, to invest €1.7 billion in Europe

Apple Inc announced on Monday it plans to complete the construction of its first European data centers, which will be powered entirely by renewable energy, by 2017.

The iPhone maker said it would spent €1.7 billion on the construction of two separate data centers, located in Denmark and Ireland.

The facilities are expected to begin operation in 2017 and will power Apples online services for Europe, including the companys iTunes, application store, iMessage, maps and the personal assistant application Siri.

Like all of the companys data centers, the two new facilities will be completely powered by renewable energy. However, the European data centers, each measuring 166 000 square meters, are projected to have to lowest environmental impact compared to Apples other operations.

Additionally, Apple said it would look for local partnerships in order to develop more renewable energy projects, including wind harvesting, which will be aimed at providing power in the future.

Apple is the latest technology giant to create it own data center in Europe amid increased concerns about information privacy, following the scandal related to the US National Security Agency data surveillance program, or PRISM.

Google has a facility in Finland and is constructing on in the Netherlands, while Facebook is building a data center in Sweden, Amazon and Salesforce have also announced they plan to open computer houses on the continent.

Europe has become more strict about protecting the information of its citizens, forcing companies to comply with a number of regulations before they are allowed to carry data, including names and addresses, outside the region.

Additionally, Europe is discussing a proposed legislation that would allow US companies to be penalized by as much as €100 million should they fail to follow the new security rules.

“We’re excited to spur green industry growth in Ireland and Denmark and develop energy systems that take advantage of their strong wind resources,” said Lisa Jackson, vice president of environmental initiatives.

The projects will create ”hundreds of local jobs” and provide additional benefits to the community, Apple said. In Ireland, the companys data center will deliver an outdoor space for local schools, as well as a walking trail, while the facility in Denmark is expected to capture the excess heat from the systems and redirect it towards the district heating system.

Apple gained 0.81% on Friday and closed at $129.50 on the NASDAQ, marking a one-year increase of 70.7%. The company is valued at $754.28 billion. The stock edged up 0.16% on Monday during pre-market trading.

According to the Financial Times, the 41 analysts offering 12 month price targets for Apple have a median target of $135.00, with a high estimate of $160.00 and a low estimate of $60.00. The median estimate represents a 4.25% increase from the last closing price.