Next Generation Data (NGD) is to host AirVM and Azlan’s cloud on-demand software services for customers based in the UK and Europe.

Azlan, a division of US tech giant Tech Data, said the move follows issues raised by customers in wake of the NSA-related data privacy concerns.

Local country data will no longer be hosted from data centers in North America, it said.

AirVM’s services will be marketed to cloud providers and resellers under its global distributor brand CloudProvider brand.

Azlan’s CloudProvider solution is powered by AirVM’s AirSembly cloud delivery and commercialization platform for VMware clouds.

It is sold by a network of value-added resellers (VARs) who use their own cloud infrastructures to offer cloud services and computing resources as a hosted solution to their end-user customers.

AirVM CEO Joshua Vautour said: “Our move to NGD is also in response to UK and European businesses and government departments increasingly requiring data to remain in territory.”

Finding a home for data in Europe will unlock ‘significant pent up demand’ for AirVM and Azlan, he said.

The move of the data hosting business from the US to Wales will be a boost to the local economy, said Sir Terry Matthews, AirVM’s chairman.

“The partnership will contribute significantly to the transformation of the region into a dynamic technology hub,” Matthews said.

NGD Europe is a 750,000 sq ft Tier 3 carrier-neutral facility with the potential for 19,000 server racks. It has a 180 MVA 100% renewable energy power supply.