Carbon Stealth Tax Threatens to Push Data Center Investment off Shore: DatacenterDynamics London 2010 pre-Conference Research

By Datacenterdynamics, PRNE
Sunday, October 31, 2010

Users Fear the UK's Carbon Tax Will Push Investment Overseas as Operating Costs are hit by the Carbon Reduction Commitment Efficiency Scheme Tax

LONDON, November 1, 2010 - One third of UK data center operators believe that the UK CRC will drive
IT and data center facilities overseas.

In a survey of some of the UK's biggest data center operators 33% said it
was probable or very likely that UK CRC efficiency scheme tax would increase
IT and data center facilities moving off shore and almost half (47%) said it
was possible that the scheme would push investment overseas.

83% said they are concerned about the rising cost of purchasing carbon
allowances and 81% are concerned about the rising uncertainties surrounding
the CRC scheme.

In October's Comprehensive Spending Review the Government announced that
it would retain the fees paid for carbon credits which must be purchased from
April 2011 by companies using 6,000MWH of power, scrapping a plan to rebate
companies which were the best performers in reducing energy use and cutting
carbon emissions.

By effectively turning the scheme into a tax, big power users such as
data centre operators now face the double impact of rising power costs and
costs for purchasing carbon credits.

DatacenterDynamics London conference on 9th and 10th of November at the
Lancaster London Hotel, W2 has a number of sessions examining the
implications and the impact of the carbon tax.

    9th November, Hall 2, 0915
    CRC Update - The Implications of the New Tax
    Mark Bailey, Partner - Speechly Bircham LLP & UK Council of Data Centre
    Operators - Intellect

    9th November, Hall 3, 1510
    The CRC and Energy Efficient Solutions

    9th November, Hall 2, 1655
    Panel: From the Carbon Reduction Commitment to the CCA - Is it out of the
    Frying Pan into the Fire, or in Fact a better Deal for UK Data Centre
    Operators? Panellists:

BCS Chartered Institute for IT

Thomson Reuters

Enviros Consulting

10th November, Hall 4, 1000

The Carbon Reduction Commitment - The Drivers behind the Scheme and how
the Changes Will Affect You

DatacenterDynamics Research Group conducted an online survey of 80 of UK
data center operators.

    27% work in colo managed services or hosting
    14% work in Telecommunications
    16% work in Finance
    20% work in Public Sector

Contact: +44(0)207-426-4846, Nick.parfitt at, ambrose.mcnevin at

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