Dutch data centers risk financial problems due to increasingly high energy prices. Some data centers are looking to break contracts and pass costs to customers. Unfortunately, the latter have little choice.
Since August 2021, the price of data ceter electricity has quadrupled. Russia’s invasion of Ukraine caused further price spikes. The Financieele Dagblad (Dutch newspaper) reports that several data centers are suffering — especially those with flexible electricity contracts and fixed customer rates.
Data centers want price adjustments
As a result of the energy crisis, more and more data centers are contacting customers about energy costs. The Dutch Datacenter Association (DDA) claims that some data centers are postponing investments due to enormous pressure. More and more data center operators are discussing the possibility of passing energy price spikes onto customers. Experts expect customers of Dutch providers to shortly receive an official letter announcing or proposing a price revision.
Little choice for customers
Customers have little choice but to go along with their data center suppliers. Some providers are exempt from energy price changes due to long-term contracts, but alternatives are scarce. Customers may opt for providers in France or Sweden with different energy sources. In some cases, the lack of an AMS-IX connection may affect service quality.
Tip: Google Cloud will increase prices for storage and other services