Dalarna is an excellent choice for data center operations

The region of Dalarna, with it’s central location in the heart of Sweden offers cool favourable climate for green data centers together with a closeness to Stockholm and Arlanda International Airport.

Ideal location for green data centers

Sweden’s unique combination of low energy costs, the lowest in the European Union, together with a strong renewable energy base, a near zero-carbon footprint and robust fiber connectivity makes it one of Europe’s most ideal locations for green data centers.

Lower cost of power reinforces Sweden’s leading position

Tax cuts have reduced the total cost of electricity used by data centres in Sweden by approximately 40%, resulting in one of the lowest cost of power in Europe. Effective January 1, 2017, a new legislation lowered the energy tax by 97 percent for data center operators in Sweden. Based on the new level, the total annual power cost for a 10 megawatt (MW) facility will provide an estimated annual savings of between $1.6 to $2.7 million.

The new tax level represents a decrease from either $32 (295 SEK) or $22 (199 SEK) per megawatt-hour (MWh), down to $0.55 (5 SEK) per MWh. This is applicable to both existing data centers and new facilities exceeding 500 kilowatts installed IT capacity, excluding cooling facilities. Along with Sweden’s extensive renewable power production, the carbon footprint is minimal.

European leader in climate-friendly energy and sustainable technologies

In 2010, the Swedish government appointed Dalarna the “Pilot Region for Green Development” with the motivation that Dalarna recognizes the benefits in the transition from an economy largely reliant on traditional Swedish base industry into a green economy. The strategy for the future work in the area is set, sometimes with goals much higher than the goals in the EU and the rest of Sweden. For example the share of renewable energy by 2020, the goals for the EU is 20 percent, Sweden 50 percent and Dalarna 84 percent. For data center operations, Dalarna can offer 100 percent renewable energy.

Why Dalarna?

  • Low cost renewable electricity
    Sweden has the highest share of electricity generated from renewable sources in Europe in combination with one of Europe’s lowest electricity pricings and a new lowered energy tax level for data center operations
  • Stable and robust power grid
    Sweden has a stable electricity grid and well developed infrastructure
  • Ideal central location
    Dalarna’s central location in Sweden ensures low latency and is ideal for data center operations
  • Connectivity
    Sweden is the most connected country in the world with an extensive fibre network
  • Cool climate
    The cool climate offers ideal conditions and free cooling for data centers
  • Stable economy
    The Swedish economy is performing well in comparison with other Western nations


Please contact us for information about investment opportunities in Dalarna!

Please contact us for information about investment opportunities in Dalarna!

Maud Hallmans
Investment Promotion Manager
Phone +46 243-48 88 60
Mobile +46 76-763 03 17


Data Centers by Sweden

Invest in Dalarna Agency is part of Data Centers by Sweden. Data Centers by Sweden is a nation-wide investment promotion project managed by Business Sweden. Read more about the project here!


Digital Infrastructure and Economic Development (pdf)
Executive Summary of the report (pdf)
An impact assessment of Facebook’s Data Center in Northern Sweden
The Boston Consultancy Group

Etableringen av Facebooks europeiska datacenter i Sverige och Luleå (pdf)
En ex-ante utvärdering

Industry publications

Advantage Data Centers (pdf)
Business Sweden

Fact sheet

Application for data center tax reduction (pdf)
Business Sweden