Dell sued over $70m price increase for data centre servers

XTX Finland OY has brought proceedings against Dell Products Unlimited Company in Ireland's High Court

The case was admitted to the fast-track Commercial Court on Monday by Mr Justice Rory Mulcahy on consent between the parties. Picture: iStock

The Irish-registered Dell technology firm is being sued by a Finnish company over a price increase sought for providing servers for a 15,000sq m data centre.

Global algorithmic trading and financial technology group XTX Finland OY has brought High Court proceedings against Dell Products Unlimited Company of Dublin, a global supplier of technology products.

The case was admitted to the fast-track Commercial Court on Monday by Mr Justice Rory Mulcahy on consent between the parties.

Paul Gallagher SC, for XTX, said the case concerned 1,680 servers which are now going to be delivered but the dispute is over the uplift in price. It was his client's position that there was a fixed price and some $70m (€60.3) put into escrow but they were anxious to get that money as soon as possible.

The judge, in admitting the case to the list, approved directions for the progressing of the case and adjourned it to December.

XTX claims there was an agreed price of some $549m.

It says it agreed to pay an additional $5m above the quoted price in order to avoid exposure to future price increases.

Dell asked XTX for additional sum

Initial delivery times slipped by two months and Dell then said that due to an increase in the cost of component parts, XTX would be required to pay an additional sum of between $62m and $70m. 

Dell has also suggested it might seek to impose further increases under the agreement between the companies.

In an affidavit seeking entry of the case to the Commercial Court, XTX director Cameron Scott Hill said his company was shocked at the price increase in circumstances where an agreed additional sum would be paid to avoid exposure to future price increases.

Dell, in its responses, said it was not willing to lose tens of millions of dollars on the transaction. 

It said other customers faced with price increases had gone to other suppliers but had come back to Dell and agreed to the price adjustments.

It also said it was not in a position where it could deliver the equipment at the terms it thought valid when the agreement was signed in November 2025.

Mr Scott Hill said Dell expressed that it was "embarrassed" by the situation.

Dell disputes the claims made by XTX.