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Amsterdam halts setting up data centres

City reports a strain on its property market and power networks

Amsterdam will halt setting up data centres in the city, according to Bloomberg.

The Dutch capital has more data centres than any other major city in the world, having attracted tech companies with tax breaks and cheap electricity – but now reports a strain on its property market and power networks.

The Amsterdam region houses around 70 per cent of the data centres in the Netherlands and approximately a third of all the data centres in Europe, many of which opened in the last five years.

Meanwhile property prices in the city have climbed as more companies and people move to the city, many following the UK’s Brexit vote.

Mariëtte Sedee, alderman for spatial development, environment and agricultural affairs in Haarlemmermeer (a municipality southwest of Amsterdam) said: “It is necessary to take a break and formulate policy first, so that we can get a better grip on the location of data centres.”

The Dutch Data Centre Association responded: “Our excellent data centre infrastructure is a magnet for (international) tech companies and brings a lot of employment with it. We are surprised that a rigorous decision like this is being taken right now and so suddenly.”