European Internet exchange centre operator Interxion has opened the first phase of its new #50 million Internet exchange centre (IEC) in Park West Business Park in Dublin.

IECs are centres which host facilities that manage computer systems and Web servers for the operation of websites and online e-commerce systems.

The company says the 14,000 sq. feet centre, which was officially opened yesterday by the Minister for Public Enterprise, Ms O'Rourke, was built in response to requests from its European customers. The company has IECs in 14 other European cities, which are used by around 190 customers.

"Our principal focus is on expansion in the EU," said Mr Tom Cahill, managing director of Interxion Ireland. "Sixty per cent of our customers have used the Interxion service from centres in at least four different countries."

Mr Cahill added that with continuing US investment into Ireland - despite a slight slowdown - US companies still wanted to use Dublin as their base or hub for expansion into the European market.

Speaking at the launch of the new centre yesterday, Ms O'Rourke said that despite the difficulties experienced this year by the technology sector, it was reassuring to see companies like Interxion choosing to locate a major facility in Dublin.

"Despite the global contraction of the communications market, I still believe that the Internet presents Ireland with many great opportunities for economic prosperity," the Minister said.

Recent figures have shown that there is almost two million sq. feet of hosting space and 22 centres have been completed or planned for later this year.

The services provided at the IEC in Park West will include equipment housing, hosting and storage, and managed connectivity services. The company will employ around 25 people and expects to have 50-60 customers in Ireland by the end of the year.

The centre will be constructed in four phases. Phase two is expected to be opened in early 2002, followed by the remaining phases between 2002 and 2003.

A recent industrial report on Internet infrastructure providers in Europe by analysts Schroder Salomon Smith Barney ranked Interxion as the top such provider in the EU.