Sweden Proposes Lower Electricity Tax for Data Centers

A recent study by the Government of Sweden proposes that data centers should be included in the manufacturing industry tax rate of 0.005 SEK / kWh. The current rate in The Power Region is 0.194 SEK / kWh. The proposal is expected to be effective as of January 2017 and will lower electricity prices for data centers by around 40%.

30-40% lower electricity costs

The study suggests that large-scale data centers with IT-effect higher than 0.5 MW will receive the lower tax rate of 5 SEK / MWh (0.59 USD / MWh), the same as manufacturing industries. Current data center tax rate in The Power Region is 19.4 SEK / MWh (2.28 USD / MWh). The lowering means a saving of 20-40% on electricity costs. (1 USD = 8.5 SEK)

Opportunity for more investments

The suggested changes are expected to be effective as of January 2017 and mean that Sweden’s competitiveness on the data center market rises with prices on level or lower than other Nordic nations. This places Sweden as one of the cheapest, most reliable locations for data centers in the world.

“We believe that investment rate is going to speed up now. Several large actors have waited for the new lower electricity tax”, says Magnus Lindgren, project leader of The Power Region and Investment Promotion Director at City of Östersund.

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