Struggling broadband scheme wins plaudits from data security giant

National data security company Onyx said yesterday it is to expand its Sheffield data centre by a further 20,000 sq ft, providing hundreds more server racks and office facilities for its business clients.

Onyx signed a £42m investment deal with equity firm ISIS late last year and has since been looking for opportunities to expand.

The firm said the availability of South Yorkshire’s publicly-funded superfast broadband network, Digital Region, played a “significant part” in its decision to choose Sheffield for its new investment.

“This is great news for the South Yorkshire region,” said Onyx chief executive Neil Stephenson.

Digital Region is one of the most advanced broadband networks in Europe, offering next-generation internet speeds of at least 25Mbs to 80 per cent of homes and businesses across South Yorkshire.

But few customers have signed up to use the service, and the Yorkshire Post revealed this week that the project is suffering massive losses. Despite having already received £80m in grants and loans, the scheme looks set to require a further multi-million pound bailout from taxpayers this year.

The scheme also received backing yesterday from local internet retailer LittleBigOne, which sells the service to people in the area.

Director Teresa Robbins said: “We are fully confident the project is in a strong position to deliver outstanding services and strengthen the local economy.”

Ms Robbins said the fact Digital Region is only available via smaller local firms is “not at issue”, pointing out that its coverage area stretches far beyond what is offered by national giants BT and Virgin.