Low Electricity Tax

sweden electricity tax data center

(Updated February 2017) The Government of Sweden has implemented a change to the Swedish electricity tax system from January 2017. The change will be 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 page 306 (Swedish).

 Eligibility

  • data centers with an installed IT effect of 0.5 MW and more are included
  • only business in “IT, data processing or rental of server space” are included
  • if a data center qualifies by at least 0.5 MW installed IT effect, even the rest of equipment (eg cooling) is covered by the lower rate

Law

  • the change entered into force on January 1, 2017
  • the new rate is 5 SEK / MWh (0.54 USD / MWh)
  • the old rate (valid until December 2016) was 195 SEK / MWh in The Power Region
  • 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 rate of 295 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 20 GWh can apply for an exemption and pay the lower rate of 5 SEK / MWh directly, without waiting for refunds
  • Detailed instructions from Data Centers by Sweden

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