AMSTERDAM, Oct 11 (Businesshala) – Rising electricity prices are hurting small data center operators in the Netherlands, an industry association said on Monday as it sought financial support from the government.
Amid the global energy crisis, the Dutch Data Center Association called on political leaders to limit electricity prices, provide corporate tax breaks or introduce subsidies to support businesses investing in clean energy.
“Almost every business relies on a data center, so they shouldn’t take it lightly,” said association spokesman Stijn Grove. “This is an area of vital importance. We shouldn’t wait too long to do something about these prices because it could have an impact.”
Roughly 60 data center operators in the Netherlands make up about 2.3 percent of national electricity consumption, making them the most recent price hikes.
While larger companies are less sensitive to price fluctuations, Grove said smaller companies typically do not hedge against energy costs. They are now being forced to pass them on to customers and reduce investment.
“A nearly tenfold price increase is causing cash flow problems and also problematic for investments in sustainable energy projects. They are coming under pressure at these levels because you need that cash,” Grove said.