The shock waves from Ukraine

How is the Ukraine conflict affecting digital infrastructure and the data sector? In response to multiple queries, Uptime Institute Intelligence has identified six main areas where operators and customers of digital infrastructure are experiencing effects from the conflict or will do so soon, not just in Europe but globally. (In Russia and Ukraine there are over 150 data centers, but these are not included in our analysis.)

Energy prices

In 2021, electricity prices already rose dramatically partly because of the post-COVID boom in economic activity, and partly because of tight energy markets caused by a combination of weak renewable energy production and a Russian squeeze on gas supplies. Electricity prices can account for around a quarter to two-thirds of the operational costs of a data center. Prices are now near record highs, peaking at 400 euros / megawatt-hours in some European markets shortly after the invasion in February. Because electricity prices globally are linked to liquid natural gas, forward prices across the world will remain high for at least the rest of 2022, especially in Europe.