Low Electricity Tax

In 2017 the Government of Sweden implemented a change to the Swedish electricity tax system. The change is beneficial for future investments to The Power Region, potentially reducing total electricity costs for data centers by up to 40% depending on which type of business you are operating (see below)

Electricity prices in The Power Region are already among the lowest in the European Union.

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

 Eligibility

  • 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” i.e. owners of data processors proper 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
  • N.B. co-location facilities (not owning the data processors proper) are momentarily exhempt of these tax benefits – see full text on National Tax Authorities homepage (Swedish)

Law

  • 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…

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