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0 pointssupermatt3mo ago0 comments

> Lithuania is definitely one of the cheaper countries

And yet has one of the highest wholesale rates...

> Hetzner prices it at...

Hertzner are reselling. They make a profit on energy resale. Their rate also includes a substantial buffer on the actual rate to account for volatility. Their rate is most likely less than half of what they are passing on for colo.

For reference, last year German industrial energy prices were around 10c/kWh INCLUDING taxes and network fees - and the government are looking to subsidize that further to target 5c/kWh: https://www.gleisslutz.com/en/know-how/germany-cuts-costs-el...

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ffsm83mo ago

You're talking about select industries which are being supported via subventions, data centers are not included. If you pay attention to the wording in your cited article, they've said so as well.

And hetzner does not have a large upsell for their energy prices, they're pretty much passing in the price as-is according to their own statements (from the large increase to 40c)

Almost all commercial applications need to pay the quoted prices around what's shown in figure 6

supermattOP3mo ago

Ok, it seems I am mistaken that this subsidy applies to datacenter (apparently there is ongoing discussions to include them for this reason).

That said - I 100% don't believe that hertzner are simply passing on the price for their colo clients. Where did you read that they are not making a profit off electricity resale?

Here is another link discussing industrial energy prices WITHOUT reductions: https://www.smard.de/page/en/topic-article/213922/216044

So less than 17c/kWh in 2024, and likely another 2c when adjusted for current wholesale prices and network fees.

ffsm83mo ago

> That said - I 100% don't believe that hertzner are simply passing on the price for their colo clients. Where did you read that they are not making a profit off electricity resale?

That's indeed probably untrue, you're most likely correct there.

The statement was wrt the increase (they're passing on the increase in cost, not that they're mirroring the cost the energy provider!)

And after thinking about it some more, they absolutely have to make a significant upcharge, as they need to pay for wiring to the rented devices, Large battery banks for electricity temporary fail over and finally diesel generators if power is down for an extended period of time (that has all been demoed via YouTubers like derBauer )

j / k navigate · click thread line to collapse

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ffsm83mo ago

You're talking about select industries which are being supported via subventions, data centers are not included. If you pay attention to the wording in your cited article, they've said so as well.

And hetzner does not have a large upsell for their energy prices, they're pretty much passing in the price as-is according to their own statements (from the large increase to 40c)

Almost all commercial applications need to pay the quoted prices around what's shown in figure 6

supermattOP3mo ago

Ok, it seems I am mistaken that this subsidy applies to datacenter (apparently there is ongoing discussions to include them for this reason).

That said - I 100% don't believe that hertzner are simply passing on the price for their colo clients. Where did you read that they are not making a profit off electricity resale?

Here is another link discussing industrial energy prices WITHOUT reductions: https://www.smard.de/page/en/topic-article/213922/216044

So less than 17c/kWh in 2024, and likely another 2c when adjusted for current wholesale prices and network fees.

ffsm83mo ago

> That said - I 100% don't believe that hertzner are simply passing on the price for their colo clients. Where did you read that they are not making a profit off electricity resale?

That's indeed probably untrue, you're most likely correct there.

The statement was wrt the increase (they're passing on the increase in cost, not that they're mirroring the cost the energy provider!)

j / k navigate · click thread line to collapse