A transatlantic telecommunications cable linking the UK to the USA is set to be plugged in at a former military base in Northern Ireland, it was announced Wednesday.
Hibernia Atlantic confirmed that the Fort George Army and Navy compound in Londonderry has been selected to house the Project Kelvin telehouse.
The company said the site on the banks of the River Foyle was the ideal place for the facility. Derry regeneration company Ilex will now apply for planning permission for the development.
The fibre optic cable, which connects England to North America, runs along the seabed. A 22- mile offshoot will now link Northern Ireland to the high speed digital service.
The cable was brought ashore in Portrush last month. The telehouse is where it will be plugged into the local telecommunications network.
A cable is also being brought ashore in Dublin to enhance services in the Republic of Ireland.
The project is jointly funded by the Stormont executive, the Irish government and the EU.
The location of the telehouse has been a source of controversy, with Coleraine having been previously earmarked for the communications hub, before the decision was reversed amid a high profile campaign by political representatives from the Maiden city.
Fort George has already been earmarked for a number of regeneration initiatives.
Reaction
Derek Bullock, vice-president of Network Operations Hibernia Atlantic, said he was delighted the telehouse was coming to Derry.
"It is important that the potential investment for the city through the telehouse and the cable itself is recognised. This is the right location and local businessmen and entrepreneurs can now look to the future where there will be a new wealth of capacity and the ability to directly and securely connect to Canada, the US, Britain and mainland Europe."
Stormont's Social Development minister Margaret Ritchie and Enterprise minister Arlene Foster both welcomed the announcement.
"The construction of the Project Kelvin telehouse will represent the first physical development on Fort George and I hope it will be followed by many more major developments as we continue to advance our vision of making this site an economic driver that delivers jobs and prosperity for the people of Derry and the North West," said Ms Ritchie.
Ms Foster said: "This decision, the result of the private and public sectors actively working together, is an important milestone in the roll-out of Project Kelvin.
"Hibernia Atlantic now has a very promising location for its Londonderry facility and its position will enhance the attractiveness of the overall Fort George development to both local businesses and potential overseas investment.
"This flagship project is one of a number of actions being taken under the Programme for Government to capitalise on Northern Ireland's world-class telecommunications infrastructure.
"In these challenging economic times it is more important than ever that the private and public sector work together to maximise the benefits of this investment."
Now that a site has been identified, Hibernia Atlantic must submit a proposal to Ms Foster's department and the Irish Republic's Department of Communications, Energy and Natural Resources.
© Press Association