Datacentre provider Verne Global has announced that it is expanding its from 500 square metres to 1,000 sqare metres to meet increasing demand.
The expansion will see the Keflavik facility double in capacity as a second datahall is brought online at the ex-NATO military base.
Verne Global is partnering with UK-based Colt who will be responsible for adding another 12 modules to the site in a new data hall.
The modules will be fabricated at Colt's manufacturing plant in England and shipped to Iceland in May, before going live in the third quarter of this year.
Colt's VP of operations, Ian Dixon, told ZDNet on Thursday that this is the second order Verne Global has placed with Colt.
"We delivered the first one at the end of 2011," he said. "They've been filling that as part of their business and have come back to Colt so we can add a second data hall and help them grow their business."
State-owned Landsvirkjun provides Verne Global with 100-percent 'green' electricity, as it generates power from renewable hydroelectric and geothermal sources native to Iceland.
The datacentre has a power-usage-effectiveness (PUE) of 1.21, which is achieved in part by using the cool Icelandic fresh air to prevent overheating in the data halls instead of energy-consuming air conditioning units and heat exchangers.