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UK Energy Price Hike Could Send Data Centers Abroad

A number of companies operating data centers in the UK could end up moving abroad if the UK Government’s proposal to increase electricity charges for businesses by up to 43 percent by 2020 end up being approved.

Both data center operators and the Confederation of British Industry (CBI), which represents the private sector in Britain, have said they are concerned the proposal could end up costing not only jobs but competitiveness in a number of industries that rely on fast and reliant low-latency data center operations.

But it may not be as bad as it seems, according to London City data center operator City Lifeline managing director Roger Keenan.

“Not all data centers are the same, and they don’t exist for the same reason,” Keenan said.

“Some data centers need a lot of computation power (and therefore electrical power) but have little need to communicate with the outside world. This might be geological computation, with lots of number crunching, little communications and few staff. These kinds of data centers may leave the UK.”

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