Facebook to put its servers in Sweden

Facebook has chosen a chilly town on the edge of the Arctic Circle to build its first server farm outside the US.

The social networking giant, whose need for vast computing power puts it among the world's fastest-growing energy users, has been attracted to Luleå in the far north of Sweden because it will be able to cool its servers there with fresh air instead of relying on expensive air conditioning.

It will also have access to cheap power generated from dams on the nearby Luleå River.

The town is 60 miles south of the Arctic Circle and the average temperature barely above freezing point.

Facebook will occupy three giant server halls being built between a science park and a nature reserve just outside Luleå, according to local media reports. The company plans to announce the facility today.

Scandinavian countries have been wooing internet companies and groups providing cloud computing services in the hope of boosting construction spending and local jobs.