Energy prices are skyrocketing. This not only affects our electricity bills at home, but also energy-intensive companies, including data centers, that need a lot of power to run. Looking beyond the short-term effects, this is a unique opportunity for the government to promote our Belgian data centers.
When it comes to operating a data center, electricity is without a doubt the biggest expense. Fortunately, companies like Datacenter United can build in a buffer to ensure that cost increases are not directly passed on to the end customer. Eventually the price will drop again, although we should consider that energy costs will remain 30 to 40% higher than in previous years. And so the customer will also need to deal with an indexation.
So far, the price increase has little impact on the customer base of a data center. On the one hand because the costs are partly absorbed by the data center, and on the other hand because companies simply cannot cut back on their data due to digitalization. In this respect, a local data center is one of the most favorable options since companies can negotiate specific agreements. At cloud providers, prices are also climbing to unprecedented heights, but it seems unlikely that these rates will recover in a few months.
Therefore, it is a unique chance to put our Belgian data centers on the European map. After all, the biggest factor in the energy price is controlled by the government. Apart from geopolitical perils, it is mainly the taxes on electricity that increase the costs. In the coming years, Belgium should take a close look at its energy taxes. For many energy-intensive companies, a better balance in these taxes may be necessary to guarantee their survival. And for a data center it is an opportunity to strengthen our position and ensure that foreign companies more often want to work with Belgian players.
Focus on efficiency
Rising energy prices also show that everyone needs to think about their electricity consumption and make a few adjustments. In our private lives, the emergence of sensors and smart home applications will eventually lead to more intelligent use of energy. For companies, too, efficiency is more than ever the most important word in the dictionary. As a result, the environmental narrative is finding an increasingly enthusiastic audience at C-level.
However, for companies that consume a lot of energy, green power is not the ultimate solution. Nor is it possible to make a data center 100% climate neutral. Compare it to flying: you can only travel in a climate-neutral way by not using a plane at all. Companies simply consume the power they need to run. But the way they do that can make a difference.
Since electricity is essential for data centers, they have long been working to make their energy use more efficient. New technologies also make this a little easier: today we have more control over our servers and can also enable those servers to better communicate with each other. This results in greater efficiency and better use of resources.
The sky-high energy prices will probable fall again soon, but we are at a tipping point for smarter energy consumption. The ball is now in the government’s court to support data centers and other energy-intensive businesses. It will allow us to work more efficiently and at the same time offers a unique window of opportunity to gain a firmer foothold on an international level.
Don’t hesitate to visit our website www.datacenterunited.com and discover how we can help your company and enjoy a nice start-up package!