Power charges - VAT rate change

Effective 1 January 2026, the VAT rate on power charges increased from 9% to 23%. This change ensures consistent VAT treatment across Equinix entities.

Why this change is happening

In December 2024, BT Datacentres Ireland Limited (now Equinix (DB1) Limited) joined Equinix. As part of the integration, we updated the VAT treatment for services provided to local customers to ensure consistency.

What’s changing

Under European tax rules, colocation services, including power, are considered a single supply. Since 1 January 2026, all colocation services, including power, are subject to the standard VAT rate of 23%. The reduced 9% VAT rate no longer applies to any part of the colocation service.

Do you need to take action?

No action is required. This change is already reflected in your invoices issued from January 2026. For questions, please contact our indirect tax team at VAT@eu.equinix.com