28.02.2014

Cheaper electricity for data centers in Finland

Amended law more than halves the electricity tax bill of data center companies in Finland.

The Finnish government has amended the law on electricity tax in order to lower the tax rate paid by data center companies operating in Finland. The electricity tax rate will fall from 1,703 cents per kWh to 0,703 cents per kWh when the amended law comes into effect on 1 April 2014.

To qualify for the lower tax rate, the data center operation must be the primary business of the company and the data center should have a total power usage of at least 5 MW. The lower electricity tax rate already applies to industrial, mining and agricultural activities in Finland.

Attractive location

Finland has attracted major data center investments from companies like Google, TelecityGroup and Atos thanks to its cool climate, highly skilled IT-professionals and well-functioning infrastructure. The lower electricity tax rate is set to further boost Finland’s competitiveness as a cost-effective location for data centers.

The latest data center investments in Finland include the construction of a large facility in Mäntsälä by the Russian search engine giant Yandex, which is due to open this summer. Microsoft announced last September that it is also investing EUR 200 million in a new Finnish data center following its acquisition of Nokia.

Source: Ministry of Finance