Lower cost of power reinforces Sweden’s leading position for data centers in Europe
STOCKHOLM – January 25, 2017 – Effective January 1, 2017, a new legislation lowered the energy tax by 97 percent for data center operators in Sweden.
Based on the new level, the total annual power cost for a 10 MW facility will provide an estimated annual savings of between EUR 1.5 to EUR 2.5 million.
“The energy tax change has made our Swedish data centers even more attractive overnight,” said Niclas Sanfridsson, Equinix managing director for Sweden.
“Equinix’s global interconnection platform supports some of the world’s leading businesses. We expect this new tax structure to encourage many of our international customers to make Sweden an integral part of their global IT strategy.”
The new tax level represents a decrease from either EUR 31 (295 SEK) or EUR 21 (199 SEK) per MWh, down to EUR 0.5 (5 SEK) per MWh.
This is applicable to both existing data centers and new facilities exceeding 500 kW installed IT capacity, excluding cooling facilities. Along with Sweden’s extensive renewable power production, the carbon footprint is minimal.
“For data center investors, the new legislation results in a total electricity cost of between 3.5-4.5 euro cents per kWh,” said Rick Abrahamsson, industry expert at Swedish energy company Vattenfall.
“This provides a strong business case with a near zero-carbon footprint.”
“We have already seen an increased level of interest in the Swedish market,” said Tomas Sokolnicki, investment advisor at Business Sweden and head of Data Centers by Sweden.
“Investors are attracted to Sweden’s stable and robust power grid, as well as our extensive fibre network. The dramatically lowered cost of power is the final component data center operators are looking for.”
Data Centers by Sweden, through Vattenfall, one of Europe’s largest generators of electricity, will be speaking on how you can create leverage in the next generation cloud and provide strategic insight into the Nordic energy market at the Finance & Investment Forum (FIF). FIF takes place on the 26 January in London at the Marriott Hotel Grosvenor Square.
About Data Centers by Sweden
Data Centers by Sweden is a partnership between selected Swedish regions and corporate partners, offering support around due diligence and site selection for strategic or large-scale data centers. Read more at www.datacentersbysweden.com
About Business Sweden
Business Sweden’s purpose is to help Swedish companies reach their full international potential and foreign companies to invest and expand in Sweden. We offer our customers strategic advice and hands-on support in 50 of the world’s most interesting markets. Read more at www.business-sweden.s
Source: Company press release