Electrical cost increase

Dear Client,

We value the trust you have placed in Racknation as your datacenter partner, and as part of our commitment to transparency, we want to inform you of an upcoming adjustment to your colocation service agreement.

Effective April 1st, 2026, a 4.5% electrical cost adjustment will apply to your monthly colocation invoice.

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WHY THIS ADJUSTMENT IS NECESSARY

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Over the past 18 months, Racknation has absorbed a significant combination of macroeconomic pressures that have directly impacted our operating costs in Costa Rica:

1. USD/CRC Exchange Rate Deterioration

As a colocation provider, we invoice our services in US Dollars while the majority of our operational costs — including electricity, facilities, and labor — are denominated in Costa Rican Colones. Over the past 18 months, the US Dollar has depreciated approximately 12% against the Costa Rican Colón, meaning the real purchasing power of each dollar we collect has decreased substantially. This represents a structural margin compression that affects every dollar-denominated contract we hold.

2. Electricity Cost Dynamics

Costa Rica's electricity rates, regulated by ARESEP (Autoridad Reguladora de los Servicios Públicos), have experienced significant volatility driven by the impact of El Niño climate events in 2023-2024, which forced the national grid to increase thermal generation using diesel and bunker fuel — a considerably more expensive energy source than the country's traditional renewable hydroelectric generation. While ARESEP ultimately moderated the impact through offsetting tariff adjustments, the underlying cost pressure on our electricity bills remains real and ongoing.

3. Structural Cost Inflation

Beyond electricity, operational costs including labor, maintenance, and infrastructure in Costa Rica continue to adjust with local inflation, further compressing margins that are already under pressure from the exchange rate environment.

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OUR COMMITMENT TO YOU

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We want to be clear: this 4.5% adjustment is a partial offset of the pressures described above. Racknation has absorbed the majority of these cost increases over the past 18 months without passing them on to our clients. We have done so deliberately, as we understand the importance of pricing stability and predictability for your business operations.

We also want to reaffirm what does not change:

✔ Your service levels and SLAs remain unchanged

✔ Our facilities, redundancy, and uptime commitments remain unchanged

✔ Our team and support model remain unchanged

✔ Your physical infrastructure and colocation space remain unchanged

Racknation continues to offer a compelling value proposition as a local, enterprise-grade datacenter alternative — with the added benefit of operating in a country where electricity is predominantly generated from renewable sources, providing long-term cost and sustainability advantages compared to regional peers.

Should you have any questions or require further clarification, please don't hesitate to contact us at support@racknation.cr

Thank you for your continued partnership. We look forward to supporting your infrastructure needs in 2026 and beyond.

Warm regards,
Racknation DataCenters