Facebook will build a new data centre in the Danish city of Odense, the California-based tech company said at a press conference with local authorities, only the third such facility outside of the United States.

“The Odense data centre will be one of the most advanced, energy-efficient data centres in the world,” Facebook's director of data centre operations, Niall McEntegart said on Thursday.

Facebook already has a data centre in Lulea, Sweden and another in Clonee in Ireland.

The new facility will be built on the outskirts of Denmark's third largest city, best known as the birthplace of fairy tale writer Hans Christian Andersen.

It will be powered exclusively by renewable energy, McEntegart said, adding that the cold climate could help to cool servers instead of relying on air conditioners.

McEntegart told local newspaper Fyens.dk that the centre would cost more than $100 million but would not be more specific. It would provide 150 jobs when operational, he said.

Facebook bought a 0.5 square kilometre plot of land on the outskirts of Odense in October last year, but had not disclosed the purpose of the site.

Danish Energy Minister Lars Lilleholt said Facebook's decision was a recognition of Denmark's strengths.

“We have one of the world's greatest energy systems with large quantities of green energy, high security of supply, good fibre connections and competitive power prices,' Lilleholt said in a statement.

Apple also invested in a data centre in northern Denmark in 2015.

The Facebook centre, expected to be operational in 2020, will consist of two large data buildings, a building for administration and logistics as well as several other technical facilities, according to Fyens.dk.