Hosting provider Telehouse Europe is to build an £80m, eight-storey data centre in London Docklands, almost doubling its existing capacity.

Scheduled to be complete in 2010, Telehouse South will help the company meet increased hosting demands anticipated from City-based financial institutions, online and media businesses, global enterprises and the nearby London 2012 Olympics.

Telehouse Europe currently offers five data centres in London and Paris, which together with facilities run by its sister company Telehouse America and Japanese parent company KDDI, serve an estimated 700 customers worldwide.