XTX Markets, a prominent online trading firm, is set to construct a large-scale data center in Finland, diverging from the common practice among financial institutions to rely on major Silicon Valley tech firms for IT infrastructure.
The Financial Times reported that this London-based market maker will establish a 250-megawatt facility in the Kajaani District of Finland, with the initial phase featuring 22.5 megawatts of computing power.
The strategic choice of Finland’s Nordic location is influenced by the region’s lower electricity costs and cooler climate, which reduces the necessity for extensive cooling systems.
This move underlines XTX’s commitment to maintaining control over its technological assets, contrasting sharply with competitors like Citadel Securities, which utilize cloud services from tech giants such as Google for data storage and testing algorithms.
XTX’s new facility underscores its dependence on substantial processing power for its algorithmic trading operations.
The firm utilizes 25,000 graphics processing units (GPUs) to support its trading strategies.
XTX’s Chief Technology Officer, Joshua Leahy, highlighted the strategic acquisition of the Kajaani site, explaining, “We secured the Kajaani site to boost our computing capacity.”
He noted the scarcity of data center space in Europe, with demand often exceeding available supply. XTX also operates a supercomputer in Iceland, which further supports its extensive computational needs.
Additionally, in February, XTX Markets launched an AI program in New York City to propel forward research in algorithmic trading through the integration of finance and artificial intelligence.
Known as the AI Residency Program and managed by XTY Labs, it offers positions for both Junior and Senior AI Residents.
These participants engage in research projects lasting between six to twelve months, focusing on the development of machine learning algorithms tailored for the financial industry.
This expansion into self-managed data infrastructure and advanced AI research initiatives highlights XTX Markets’ strategic direction towards enhancing its computational capabilities and establishing itself as a leader in technology-driven trading solutions.