AMSTERDAM (Reuters) – Soaring electricity prices are hurting small data center operators in the Netherlands, an industry association said on Monday as it called for financial support from the government.

The Dutch Association of Data Centers has called on political leaders to cap electricity prices, give business tax breaks or introduce subsidies to support businesses investing in cleaner energy, amid ‘a global energy crisis https://www.reuters.com/business/energy/global- energy-shortage-or-coincidence-regional-crises-2021-09-29.

“Almost all businesses depend on a data center, so they shouldn’t take this lightly,” said association spokesperson Stijn Grove. “This is a critically important industry. We shouldn’t wait too long to do something about these prices because there could be a ripple effect.”

Around 60 data center operators in the Netherlands account for around 2.3% of national electricity consumption, making them highly exposed to recent price spikes.

While large businesses are less vulnerable to price fluctuations, Grove said small businesses typically don’t hedge against energy costs. They are now forced to pass them on to their customers and reduce their investments.

“A price increase of almost ten times causes cash flow problems and is also problematic for investments in sustainable energy projects. They are under pressure at these levels because you need that money,” Grove said. .

(Reporting by Anthony Deutsch, editing by Andrew Heavens)