Low Electricity Tax

The Government of Sweden has implemented a change to the Swedish electricity tax system as of January 2017. The change is beneficial for future investments to The Power Region, cutting off total electricity costs for data centers by up to 40%. Electricity prices in The Power Region are now among the lowest in the European Union.

Contact us for more details on the electricity tax change for data centers or see the full text on National Tax Authorities’ homepage (Swedish).


  • data centers with an installed IT effect (excl. cooling & air) of 0.1 MW and more are included
  • only business in “IT, data processing or rental of server space” are included
  • prerequisite is that data center is eligible for state subsidies, one condition being financially solvent
  • if the data center qualifies above, even the rest of equipment (eg cooling) is covered by the lower rate


  • the change entered into force on January 1, 2017
  • the new rate is 5 SEK / MWh (0.56 USD / MWh)
  • the old rate will remain valid for all businesses but data centers and manufacturing industries

Cash Flow

  • the eligible data centers will still pay the higher tax rate of 325 SEK / MWh to the Swedish Tax Agency and will be refunded for the difference quarterly or annually
  • eligible data centers with an annual consumption higher than 10 GWh can apply for an exemption and pay the lower rate of 5 SEK / MWh directly, without waiting for refunds
  • Detailed information from Business Sweden should tell you more…

Comments are closed.