Thursday, November 23, 2017

DigiPlex slashes data centre customers’ electricity bills by 25%

A massive 97% electricity tax relief on commercial data centres is changing how some of the Nordic countries do business.

Nordic data centre services provider DigiPlex has announced a 25% drop in electricity prices for its customers after the company was approved for the new Norwegian tax relief scheme that reduces electricity fees by 97%.

The 97% reduction in electricity taxes was approved by the Norwegian government in 2016 and is only available to commercial data centres.

The incentive came into effect on January 1, 2017, similar to neighbouring Sweden, which has also reduced data centre electricity taxes by 97%.

Digiplex said in a statement the new tax relief will help improve the competitiveness of modern data centre companies in Norway, “both nationally and internationally”.

The provider believes that by only being available to commercial data centres, the tax relief will help stimulate Norwegian companies and organisations to modernise their data storage and move from power hungry in-house arrangements to more energy efficient external solutions.

DigiPlex CEO, Gisle M. Eckhoff, said: “It has been a long process to get the approval under the new regulations, and we are very proud to lead the way for our customers and other Norwegian data centres.

“Our existing and future clients can rest assured that we are continuously investing in innovative solutions and that we always work towards a sustainable operation. We want to reduce our power usage, and make sure our customers do not pay more than they have to, as well as minimise their carbon footprint.”

However, DigiPlex’s announcement was followed by some industry criticism as the company claimed to be the first data centre operator to be approved into the government’s scheme.

Taking to Twitter, CEO Knut Molaug, of rival Green Mountain, claimed his company had been added to the program ten days after it was launched.

He said: “First? …. Green Mountain received approval January 10th @greenmountainas”

Molaug told Data Economy: “We received the approval only 10 days after the new legislation was implemented and this has reduced our clients power cost by a third since January. The power cost now averaging around 3 pence per kWh for our clients.”

Answering to the claim, Fredrik Jansson, CMO at DigiPlex, told Data Economy: “The important thing here is to spread the word about the tax relief Norway has a data centre destination and how it benefits customers.

“It is great that our announcement has been noticed and seems to have sparked Green Mountain to go public with their approval. We hope that more Norwegian data centre operators will follow suit and announce that they are passing the benefit onto their customers.”

DigiPlex operates three facilities in Norway, in Ulven, Fetsund and Rosenholm, all in the Oslo region. The three sites have a combined capacity of 106,500 sqf.

In addition, the company operates a fourth hub in Stockholm’s Upplands Vasby, with 215,200 sqf.