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It is rarely revised state budget gives hake jump – but the regulation to remove the exemption from the electricity tax for a particular use of blocks of blocks in data centers is very regrettable and must change before the budget is adopted.
The proposal allows us to miss innovation in a very important technological area, transferring customers and jobs to data centers of neighboring countries that have access to free Norwegian electricity and scared investors from the centers. data from Norway.
With a pencil, the regulation reverses the amazing developments that have been made in this area in recent years.
It is tragic that noisy players who have created noisy data centers near residential areas (which could easily be solved by noise requirements) and concerns over the use of digital technology block technology have allowed our politicians to propose general conditions that destroy an entire sector. This must not happen!
1. Innovation and jobs we miss
At the Simula research laboratory, we have just received significant research funds to study new blockchain applications.
We can still do research, but with the new rules, it is not possible to establish commercial activities of the research results. in Norway, in this region, because nobody can establish a chain activity with a special Norwegian supplement of 16.58 øre per kilowatt hour, as suggested.
According to KPMG, the blockchain market grew from NOK 3.5 billion in 2017 to more than NOK 60 billion in 2022, with annual growth of around 80%. KPMG must necessarily guess, but there is no doubt that the market is growing strongly and that block chains are an important technology in the development of many new services.
Norway has unique advantages with high power surpluses in the coming years and is well positioned to develop applications and jobs in this market.. Blockchains include a wide range of new applications, such as faster, more transparent and easier digital transactions, health information security, and critical infrastructure protection such as 5G, the Internet, and the network (as we're looking for it). in Simula).
Blockchains are based on the "proof of work" mechanism, which is demanding, but it is an area that has been the subject of much research and a number of much less effective solutions on the subject. energy plan are already in place.
Are Storting decision-makers aware that Norway, with the expected costs, is refusing to participate in this market? Norwegian players will have a tax risk in case of participation in block technology projects, provided that the fees are high if the block holders were to be used for cryptocurrency and that no player would take such Tax risk in Norway if he could do the same thing in our neighboring country. .
2. Customers move to Denmark, Sweden and Finland
The Nordic region has succeeded in setting up a Nordic electricity market (Nordpool) allowing Norwegian hydropower to operate in neighboring countries without a grid contract. Given that customers in this market are international, shipping costs in Norway will force customers to immediately transfer equipment, investments and jobs to neighboring countries.
It is very difficult to distinguish cryptovaluta from blockade because this technology is at the root of many applications, so the proposal is difficult to apply. Datacenters need to find out what the "collocation center" customers are actually doing on their machines, which is totally impossible to implement in practice.
I have spoken to four data centers today who are currently conducting an exploratory review on their move to Sweden and Denmark before 1.1.2019.. Investments in regulation, landings, power, networks, training and workplaces are unfortunately difficult to move – so there will be heavy losses.
International customers have also received and are extremely worried.
In addition, the very bad environmental policy and the bad business of the Norwegian electricity suppliers to send electricity to Sweden, Denmark or Finland, where one can lose 20% of the electricity during the transfer. In neighboring countries, however, it will be advantageous for customers to buy Norwegian electricity for free as they do not have to pay for the loss incurred in the transfer.
3. Block the efficient use of capacity in data centers
Data centers offering a "colocation" in which the customer's equipment can be placed allow for flexible use of capacity. For example, a customer using a new artificial intelligence technology during the day can animate a new cartoon at night with the same equipment.
If there is a pause between assignments, the equipment can be used to calculate block chains with many applications, including digital currency.
With the proposed rules, such a customer will result in increased fees for the entire data center, which will prevent Norwegian players from offering a roommate. Customers will never agree to decline specific applications for their general computers.
4. The resolution creates a great deal of uncertainty for all investments in data centers in Norway
The uncertainty surrounding the fees makes it unattractive to invest in data centers in Norway, also for applications other than block technology. No investor will suspect that the framework conditions can be changed without notice, especially when Norwegian electricity can be purchased for free and without restrictions in neighboring countries, capable of guaranteeing political stability in the tax area. This applies regardless of the application, as it is impossible to know if other applications are not included at the next junction.
The law on reduced charges for data centers over 0.5 megawatts was passed on January 1, 2017 and, 22 months later, the regulation proposes to postpone this law with one month notice! We do not want to compare a country with such unpredictable framework conditions for our own sector.
The "Invest in Norway" initiative of Innovation Norway has done an excellent job of marketing in Norway as an attractive country in which to invest for the actors of information processing centers and promote political stability as one of the main reasons for its establishment in the market. The painstaking efforts to create the framework conditions and awareness of the establishment in Norway are being destroyed by this proposal and will also affect actors who are not involved in blockages.
The data center industry offering services such as secure cloud computing, Internet control, security and traceability in transactions and new services in 5G telecommunication networks relies on centers data with stable framework conditions, which will also be affected by the proposal and will be established abroad.
It is incomprehensible that such important decisions are made without consultation and consultation. with those who really understand and are concerned with this and who have practical, theoretical and commercial knowledge of what it means for the country.
The change destroys confidence in Norway as a country of predictable fiscal policy, destroys important international trade relations in data center applications and will cause significant losses for Norway – while also increasing consumption. energy, jobs, tax revenues for electricity and jobs, as well as the potential for innovation in this area. in our neighboring country.
We make a big mistake.
Meeting with the data center industry Monday: – People are angry and cursed. It's a crisis problem! (Optional)
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