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Telecity said it will pay its first dividend on first half results from 2012, on the back of positive 2011 financial results and buoyed by a predicted strong year ahead,

TelecityGroup CEO Michael Tobin said the dividend is the next step in the evolution of the company, which is currently carrying out construction work in every data center market it is in.

The European colocation provider has data centers in Amsterdam, London, Frankfurt, Milan, Paris and Stockholm and announced new purchases in London and Dublin in 2011.

Its total customer power offered in the market was up to 68MW at the end of 2011, and with new capacity coming online this is expected to grow to 124MW.

Tobin said overall, Telecity had seen a 22.1% growth in revenue in 2011 to £196.4m, with EBITA up by 27.2%. to £106.2m.

“We are really pleased with 2011 as a whole,” Tobin said.

“We had a very, very strong year: One that sets the scene for further growth in the future.”

Tobin said Telecity is currently operating in a strong market where increased usage, the need for cost efficiency and increasing reliance on the Internet is driving the business. He expects high growth margins to continue over the next three years.

“We have gone from a start-up business back in the 1990s through to the strong position of the company now, and the dividend is just the next stage of becoming a complete organization really,” Tobin said.

Telecity bought Manchester-based data center operator UK Grid in September 2011 for £11.7m. It came with @ Synergy House, a 25,000-sq-ft Tier II data center. At the time, Telecity UK MD Adriaan Oosthoek said the Manchester site was right for expansion and would allow Telecity to tap into growing demand for data center space in the region.

It also confirmed its purchase of Data Electronics in the Dublin last year. This was followed up by renovations to one of the two data center acquired as part of the purchase, taking its power availability from 6MW to 10MW.

See our roundup of European data center news from the start of the year in FOCUS 20. Sign up for your copy here.