September 5, 2025
by Robert Vasquez (Llanito World (Yanito World or Giannito World))
The shortage of information and clarity about the building of a new data centre in Gibraltar, which has just made a splash in the press, surpasses what is made public.
All investment is good for Gibraltar, but it must be assessed with full information and not just the spin that big numbers provide.
To date all we have is much public fanfare with few real numbers, and no questions asked by the press on that front yet. We have news by press release and statements.
Noise and environmental issues are also good reasons why siting these centres cause protests.
It is for the GSD Opposition to inquisitively investigate and make public the missing parts of the jigsaw. We look forward to that but if history is anything to go by, expectations are not high.
The ubiquity of Hassans Law Firm is shown by the presence of its two senior partners James Levy and Tony Provasoli in photographs with the investors, and with Chief Minister Fabian Picardo, a partner in Hassans also but on sabbatical.
£1.8 BILLION?
We are told that the new centre will attract investment of “approximately £1.8 billion” between now and 2033, not that it is an investment of that amount by its promotor Pelagos Data Centres [Pelagos].
Christian JA Ryan, president of Gibraltar operations for Pelagos, confirms as much, saying, “Expected to attract approximately £1.8 billion in investment this project will enhance Gibraltar’s economy by creating jobs and supporting local businesses.”
Note the use of the word ‘expected’, which weakens the certainty with which the figure of £1.8 billion is being bandied about.
LITTLE INFORMATION ON PELAGOS
Pelagos is run by experienced businessperson and investor Konstantin Sokolov.
No information is contained in the local press about the financial standing and history of Pelagos.
We are told about Mr Sokolov that he donated $100 million to the University of Chicago to support an Executive MBA Program but see further below about him.
NO GREAT EMPLOYMENT INCREASE
Pelagos reveals that up to 500 jobs will be created in the construction of the centre.
It may be a number to boast about, but those jobs are temporary for a few years and will be spread out over the period of construction.
Pelagos projects that around 100 permanent full-time posts will result on completion.
It does not specify whether those will be in Gibraltar.
Currently it employs 50 full-time shared between London and Gibraltar. Only jobs created in Gibraltar will have some impact on the local employment economy and government tax and social security take.
It is not a vast number, so the contribution in PAYE and social security is not that significant.
FREE SITE?
We are told that the data centre will be built on a 20,000 square metre site in the vicinity of the port. The site is presently publicly owned.
There is no information on how much, if anything, has been paid by Pelagos for the site.
It seems also that the site has not been put out to public tender.
TAX ADVANTAGES?
Additionally, there is no information on whether Development Aid concessions have or will be granted to Pelagos.
Those would reduce tax and rates payments to the public purse for a lengthy period.
It will make up a public purse contribution to the investment that is to the benefit of Pelagos and will reduce the gains to the public purse for some years.
PROMOTE ACTIVITY
The project is expected to excite demand for local services, support growth in the digital and technology sectors and boost Gibraltar’s and the regions attraction for international investment.
Those expected increases are not quantified, but any such economic growth is to be welcomed.
GIBEXIT
It remains unknown whether the data centre project will or will not be affected if there is no Gibexit treaty between the UK and Spain to govern Gibraltar’s status within the EU.
The timing announced will coincide with any announcement about the finalisation of such a Gibexit treaty.
WHO IS KONSTANTIN SOKOLOV?
An internet search uncovers that Mr Sokolov “is an experienced entrepreneur and private equity investor with a track record of transforming critical infrastructure in the telecommunications, energy and financial services sector.”
“In addition to Konstantin’s role as founder of IJS Investments, he has led restructuring projects for sovereign wealth funds and central banks and has steered the listing of firms on all major stock exchanges.
Konstantin has established the Northern Pillar Energy Consortium, an initiative to connect Europe and Africa, providing clean, affordable energy and high-speed digital communications to meet the needs of tomorrow’s world. An expert in the energy sector, he was previously Managing Director for Strategy, Mergers & Acquisitions at Centrica PLC.
As a major shareholder in Viva, the largest mobile and telecommunication company in Armenia, he has championed digital transformation, drawing on his previous expertise as Director of Enterprise Architecture at Qwest Communications (now Lumen Technologies). In that role, he helped to modernize United States Government telecommunications infrastructure and developed pioneering, next-generation solutions in telecommunications and financial services. He has also provided strategic counsel to governments and major companies.
A married father-of-two, he has a master’s degree in mathematics and computer science and an Executive MBA from the University of Chicago Booth School of Business.”
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