13.08.2012

Finnish minister proposes cut in tax on electricity usage

Cheaper electricity would make Finland an even more attractive location for data centres.

Jyri Häkämies, Finland's Minister of Economic Affairs, is proposing that the Finnish government reduces the tax on electricity usage as a way of encouraging more international companies to invest in Finland. “This would especially improve our competitiveness with regard to large data centres. Major companies are constantly looking for data centre premises and the sector is growing at more than 10% annually,” he says.

Sauli Niinistö, the President of Finland, is also giving his full support to encouraging international companies to expand their operations to Finland. Niinistö and Häkämies will soon be meeting with international companies that have already invested in Finland, with the aim of developing ways to encourage more investment in the country.

Finland's cool climate makes it an excellent location for energy-hungry data centres, helping to keep energy costs as low as possible. Former paper mills, left vacant as a result of the restructuring of the Finnish forest industry, can provide ideal premises for server halls. Most of the former paper mills have been built alongside water resources which can also be used cooling the data centre.

For example, Google's data centre in Hamina uses a highly energy efficient seawater cooling system to keep its servers at the right temperature. Other important reasons for Google's decision to locate its data centre in Finland included the country's proximity to the fast-growing Russian market and the availability of highly skilled staff.


Source: Helsingin Sanomat