Sweden Should Cut Taxes For Data Centers

October 13, 2015 Taxation in Sweeden

STOCKHOLM – Sweden could entice more large-scale digital businesses to build data centres in rural areas of the country by offering them a tax break on electricity.

A new study commissioned by the government of Sweden has called for data-centres to be given the same beneficial tax treatment offered to other industries which compete internally while also requiring high amounts of electricity.

It was proposed that data centres be granted a significant cut in the tax rate on electricity, effectively equating to a 97 percent drop in the tax rate.

Sweden is currently regarded as one of the best countries in the world for establishing a data centre due to its cool climate, developed digital infrastructure, and relatively cheap renewable energy.

If the tax break is approved, the country will become an even better location for large scale data centres, as the cost of powering such facilities will fall even further.

The government hopes to attract more large scale digital facilities to the country, as they often provide high-levels of skilled employment opportunities in rural areas, boosting productivity and national development.

Sweden is already home to a number of high-end data centres, including a facility operated by Facebook and an industrial-scale Bitcoin mining operation.

Photo By: NeoSpire