A £3million loan to assist in the redevelopment of a new data centre has been approved from the Gloucestershire Infrastructure and Investment Fund.

The project is for the refurbishment and extension of the disused Shield House premises in Barnwood, Gloucester.

As a three-phase project, the proposals will commence by turning the site into a co-location data centre, which will be called Shield House Gloucester, housed in a state-of-the art building run by Indectron.

The strategic data centre will bring new high technology employment to Gloucestershire, creating numerous new jobs, the data hub will service the needs of hundreds of businesses, both local and regional.

As part of the plans for the site, existing outbuildings and offices will be removed with new two-storey offices and large data centre block being created.

Indectron managing director Andrew Bence said: "We are delighted to have secured the loan from the Gloucestershire Infrastructure Investment Fund from GFirst LEP which has enabled us to commence the construction of Shield House which will become one of the most advanced data centres in the UK.

"The data centre will allow the delivery of cost-efficient, accredited and environmentally friendly data centre solutions to a data driven economy where serving data from closer to the consumer is key.

"Shield House will help businesses provide innovative and flexible digital IT services at lower cost by benefiting from its highly connected, resilient and secure infrastructure while shining a spotlight on Gloucestershire as an emerging digital ecosystem."

David Owen, chief executive of GFirst LEP said: "I'm pleased that GIIF funding has been allocated to the Shield House Project, and the process of creating a key, strategic data hub in Gloucestershire is now underway."

GIIF can provide upfront capital funding for potential projects to stimulate local economic growth by enabling targeted investment to unlock constrained and stalled development sites and help to realise potential development value, new jobs, housing and regeneration to support the local economy.

Gloucestershire County Council acts as Accountable Body and provides the programme management for the GIIF fund on behalf of the GFirstLEP.

Cllr Lynden Stowe, cabinet member for economy, skills and growth at Gloucestershire County Council, said: "We are committed to supporting economic growth in the county and I'm pleased that we are able to play our part in supporting the GIIF fund which is making these vital investments possible."

Picture: Richard Graham MP and directors from Indectron at the groundbreaking ceremony at Shield House