A NEWPORT-based data company is expanding thanks to a £12 million investment.

Next Generation Data, based at the Celtic Springs Industrial Estate, is to build seven more data halls at its three-storey facility, which is the largest of its kind in Europe.

The expansion project, which is due to be completed at the end of this year, is being funded by shareholders.

It follows new tenancy agreements, worth more than £20million, which have been signed this year with blue chip multinational organisations including the company’s first contract with a technology- based Fortune 100 USbased corporation.

Next Generation Data took over the former LG building, dubbed Newport’s ‘white elephant’, around two years ago in a £200million project.

The centre stores hundreds of computer servers for companies like BT and helps manage IT requirements such as websites and intranets for other IT service providers and public sector firms.

In May, we reported the company had won a £5million investment from investors including Lombard and Finance Wales which meant another four data halls for the business.

Chairman of Next Generation Data Limited Simon Taylor said: “The main drive for building the additional data hall capacity this year is to meet demand from large organisations based in Europe and, increasingly, North America where our targeted US sales strategy is clearly starting to pay off handsomely.”

The Next Generation Data facility comprises three phases with a total capacity of 420,000 sq ft.

The five principal contracts signed so far account for approximately one third of the first phase, with a further third currently in discussion with potential occupiers.

Newport West AM Rosemary Butler welcomed the latest investment describing it as “a massive vote of confidence in the area.”

She said: “This new contract will be good news for local sub-contractors who’ll be needed to help with the expansion.

“It also sends out a very positive message to companies all over the world that Newport is now establishing itself as an ideal base for high-tech operations such as this.”