The tax change can take Finland’s giant investments to Sweden and Norway, warns the organization

The Finnish Data Center Association FDCA estimates that a change in the electricity tax class proposed by the Ministry of Finance would jeopardize projects in the design stage of EUR 10 billion in Finland.

At the same time, Finland could lose up to tens of thousands of jobs and billions of tax revenue.

According to the association, large data centers in particular are at risk of cancellation, as even a slight difference in electricity price has a major cumulative effect.

“Investments are likely to go to Sweden and Norway. The competition is extremely tough. If we have [sähköveroluokan muutoksen takia] There will be more than 20 euros more at the megawatt, it can swing the market again in the other direction, ”Chairman of the FDCA Board of Directors Veijo Terho estimate.

Currently, data centers pay the electricity tax II tax on electricity they consume in Finland, which is approximately EUR 0.5 per megawatt hour. In the I-tax class, on the other hand, electricity tax costs around € 22.5 a megawatt hour.

Wednesday was reportedthat it has been decided to suspend a data center project in the field due to the removal of the electricity tax subsidy under preparation.

“There have been a few other projects that will so far go on ice as the tax rises. We are afraid that there will be more more, ”Terho says.

A significant number of jobs

The FDCA has calculated that the employment impact on already published data center investments would be over 30,000 permanent jobs over the next eight years. The chapter includes direct, indirect, and through various reflection effects, which are created, for example, from maintenance and maintenance services purchased by data centers or from district heating projects related to the utilization of waste heat.

In addition, data centers have an employment effect during their construction period. According to the association, the construction of projects already published will create 50,000 man -years.

According to Terho Copenhagen Economicsin calculations and information collected from public sources.

The organization calculates that the projects already published would bring $ 3.36 billion tax revenue in the form of income, real estate and corporate taxes for the next eight years.

In addition, according to the organization, projects that have not yet been made public may be pending for up to $ 10 billion.

Finance minister Riikka bite (PS) said last week that the ministry is preparing, among other things, the removal of electricity tax subsidies for data centers and mines. The changes are supposed to fix the pit that will be created when the government decided to abandon the increase in the value added tax rate of sweets and chocolate. It would have brought annual tax revenue of EUR 83 million.

In public, data centers’ tax benefits have recently been critically reviewed. Some experts have estimated that the investments would come to Finland after cheap renewable energy without tax carrot.