UK data centres are to be granted a climate change agreement, which should be agreed by the end of 2013.
Chancellor George Osbourne announced in his Autumn statement, on 5th December, that he was granting a concession to the UK data centre industry, which would allow it a reduction in some carbon taxes in exchange for forming its own climate change agreement.
The climate change agreement (CCA) will see taxes on the sector reduced in exchange for the industry agreeing to meet set targets to increase energy efficiency. It was feared that the current high taxes would make it difficult for UK-based data centres to remain competitive against foreign rivals, which could have seen the sector stifled. The CCA should help to alleviate the tax burden, allowing data centres to compete and the sector to continue to grow as a whole.
Climate change agreements were established by the government for industries that use large amounts of power. They’re already in effect for some sectors, allowing reductions in green taxes, providing they meet agreed targets for CO2 reduction. The data centre sector is the first industry that doesn’t manufacture physical products to have been granted a CCA.
“The climate change agreement for data centres is good news for the industry,” said David McLeod, Marketing Director for Backbone Connect. “It’s great to see the government realising what a vital industry the data centre market is, and by introducing this agreement they are helping us to ensure the market continues to grow and to compete with competition from other countries.
“The data centre climate change agreement will not only help us to keep prices competitive and continue to offer the same levels of service that we always have, but we are also able to help improve energy efficiency, reduce carbon emissions and work towards the good of the planet.”
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