In Sweden, Norway and Finland, electricity tax breaks for data centers were introduced in the mid-2010s. At that time, the countries chose to provide data centers with the EU-minimum €0.5/MWh tax rate, alongside energy-intensive industries, to attract investment. In 2023, both Sweden and Norway revoked the data center tax break and recently also Finland decided to remove the break from 1st July 2026.
As tax breaks have been removed, data centers are now instead exposed to the standard electricity tax rates, which vary significantly between the countries. Electricity taxes make up 15-50% of total electricity costs for data centers in the Nordics, depending on their location.
