Netherlands: Dutch data centers: electricity gets pricey

Oct 11, 2021 | Posted by MadalineDunn

Smaller data center companies in the Netherlands have voiced concerns over surging energy prices, which they say is creating a challenging financial climate. The Dutch Data Center Association is now asking for a cap on electricity prices, corporate tax breaks or subsidies for clean energy investment. 

According to the association, smaller companies are likely to face the brunt of price hikes, as they "do not hedge against energy costs." These costs are now reportedly being passed on to clients, and companies are having to scale back their investments.

Speaking about these price hikes, Stijn Grove, the Dutch Data Center Association spokesperson, said: "A price increase of nearly tenfold is causing cashflow problems and is also problematic for investments in sustainable energy projects. They are coming under pressure at these levels because you need to have that cash."

He added: "Nearly every business relies on a data centre, so they shouldn't take this lightly. This is a sector of critical importance. We should not wait too long to do something about these prices because there could be a knock-on effect."