Leaseweb: Notice of server price adjustment due to rising electricity prices

After the French IDC merchant Online was forced to increase server prices due to electricity prices, the Dutch veteran IDC Leaseweb also issued a price increase notice.

Dear Customer, As you may be aware, the world is facing an energy crunch. Natural gas prices on the global TTF market for 2022 have increased from €18 MWh in January 2020 to €110 MWh in December 2021. Natural gas is the main driver of electricity prices , and as a result, electricity prices across the world have increased correspondingly. The reason for this volatility is the increased global demand for energy resulting from unprecedented fiscal and central bank support and supply constraints due to underinvestment and geopolitical tensions. Until now, we have been able to protect you from these higher prices. Our third-party data center providers have announced to us a substantial increase of power costs for 2022, effective January 1, 2022. As a result, we are compelled to pass on this increase to the fees of your affected services, in accordance with our Leaseweb B2B Sales Contract Schedules. The increased fees will be effective from February 1, 2022, in addition to earlier announced fee increases. We do not take this decision lightly, but the volatility in the energy markets is beyond our control and is likely to persist for the considerable future. Therefore, further energy price increases cannot be excluded. However, we will continue to make efforts to make our operations more energy efficient for our joint benefit. We already make use of very efficient data centers with low Power Usage Efficiency (PUEs), and we are now focusing our research on new ways to optimize server settings to lower energy consumption. In line with our contract, please treat this letter as a formal notification of a change in power costs. For Dedicated Racks and Colocation Racks, the fee will be increased by SGD 7.06 per Amp. For Dedicated Servers, the fee will be increased by SGD 4.41 per rack-unit. For all Cloud services, the fee will be increased by 3.5%. We will continue to provide you with exceptional service – as we move together towards a sustainable future. If you have any questions, please feel free to contact us by creating a ticket from the Leaseweb Customer Portal. We are always happy to help. Best regards, Julia Gortinskaya Managing Director Leaseweb Asia Pacific Pte. Ltd. Dear customers, As you probably know, the world is facing an energy crisis. Natural gas prices in the global TTF market have increased in 2022 from 18 MWh in January 2020 to 110 MWh in December 2021. Natural gas is the main driver of electricity prices, and therefore global electricity prices have risen accordingly. The reason for this volatility is an increase in global energy demand due to unprecedented fiscal and central bank support and supply constraints due to a lack of investment and geopolitical tensions. So far, we've been able to protect you from these higher prices. Our third-party data center provider has announced to us a significant increase in electricity costs for 2022, effective January 1, 2022. We are therefore forced to pass this increase on to the cost of your affected services, in accordance with our Leaseweb B2B sales contract schedule. The increased fees will be effective from February 1, 2022, in addition to the previously announced fee increases. We do not take this decision lightly, but the volatility in energy markets is beyond our control and is likely to continue for quite some time into the future. Therefore, further increases in energy prices cannot be ruled out. However, for our mutual benefit, we will continue to work to make our operations more energy efficient. We already take advantage of very efficient data centers with low power usage effectiveness (PUE), and we are now focusing our research on new ways to optimize server setups to reduce energy consumption. Under our contract, please consider this letter to be official notification of the change in electricity costs. For dedicated racks and colocation racks, the cost per amp will increase by SGD 7.06. For dedicated servers, the cost will increase by SGD 4.41 per rack unit. For all cloud services, fees will increase by 3.5%. As we move toward a sustainable future together, we will continue to provide you with exceptional service. If you have any questions, please feel free to contact us by creating a ticket from the Leaseweb Customer Portal. We're always happy to help. Best wishes, Julia Gotinskaya managing Director Leaseweb Asia Pacific Pte Ltd

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