The market of data centers in Romania is dominated by local operators with a relatively small size of facilities, with only 59 such units, but the specialists stressing how big the potential is given the advantages of our country in this field.
Romania has a huge potential to attract investments in new data centers. Photo shutterstock
Romania benefits from a number of favorable factors that facilitate the growth and extension of the capacity of the data centers, and could be outlined as a market in training, offering multiple strategic advantages for the development of this sector, according to an analysis made by the real estate consulting company & Wakefield Echinox.
A diversified energy mix with over 50% of the energy production from renewable sources and a stable and reliable electrical grid is among these factors. Also, investments in fiber optic networks have contributed to the quality and speed of the Internet, other essential factors for the efficient operating of the data centers.
Access to a skilled workforce in the IT field, competitive labor costs and a secure cyber security environment, aligned with European standards are also strengths that could attract the attention of developers and operators of data centers. Moreover, Romania benefits from digitization initiatives supported by the EU and national projects meant to improve the degree of digitalization of the business environment and public services.
Romania's climate reduces cooling costs for data centers
As for environmental factors, Romania's position in a temperate climate reduces cooling costs for databases. Moderate outer temperatures allow the use of natural cooling technologies, improving energy efficiency and reducing carbon fingerprint.
The costs of the land continue to be a critical point for managing the expenses regarding the development of the data centers. Although it usually represents a fraction of the total costs, the high prices of the land can represent significant barriers at the entrance, especially on the prominent markets known for the large implementations. The availability of land further increases the attractiveness of Romania, presenting opportunities to secure land at competitive prices in low risk areas.
However, despite the unprecedented growth of the global markets of databases, the capacity of databases in Romania remains relatively modest. Thus, the total installed capacity is less than 100 megawatts (MW), a reduced capacity compared to other countries in the region.
“Although the capacity of the local market is relatively limited, Romania offers a favorable entry point for international developers who want to capitalize on the advantages of a market in training. With a solid IT infrastructure, a qualified workforce and a favorable climate, Romania has the potential to become an essential hub in the regional landscape of the Data Centers. In data centers.“, Explained Laura Bordianu, Data Analyst Research Department Cushman Wakefield Echinox.
Romania has only 59 data centers
The market of data centers in Romania is dominated by local operators with a relatively small size of facilities. Currently, there are 59 data centers spread throughout the country. The highest concentration is in Bucharest, which houses 27 databases. Other notable locations include Timișoara with 9 databases, Cluj-Napoca with 8 and Brașov with 4. At Mischi, in Dolj county, Cluster Power builds the largest data center (Hyperscale), with a future operational capacity of 200 MW.
One of the main factors that determine the increase in demand for data centers is the development of cloud -type services. A large percentage of the total available capacity of mature markets is used by cloud platforms (25% in EMEA, 40% on the American continent), but in Romania there is no large cloud operator (Amazon, Microsoft) present on the market.
IT giants continuously extend their infrastructure
The global data centers industry records a substantial increase, mainly determined by the demand for artificial intelligence (AI), the adoption of cloud services and the digital transformation into various sectors. Giants such as Amazon, Google, Meta, Microsoft and Oracle continuously extend their infrastructure, boosting the global demand for the ability of databases.
Thus, the markets of western Europe data centers, North America and Asia are experiencing significant constraints, including low land availability, strict sustainability regulations, increased energy costs and challenges related to energy availability. These factors create considerable obstacles for the developers and operators of the data centers, affecting the deadlines, the operational costs and the predictability of the investments. As a result, the industry turns its attention to secondary markets, where opportunities for sustainable growth and capacity expansion are considerably higher.
The market of the data centers in EMEA (Europe, the Middle East and Africa) has registered a significant increase. The operational capacity of the markets of the data centers in EMEA has reached about 9.6 gigawatts (GW). In addition, there are projects in the construction phase with a 2.9 GW capacity throughout the region and the other 8.7 GW in stages of planning, marking an average growth of future projects of ~ 16% per year.
This expansion is particularly obvious in primary hubs such as Frankfurt, London, Amsterdam, Paris and Dublin (FLAPD), which together represent a substantial part of the capacity of data centers in the region, with 4.26 GW in capacity. London continues to lead the EMEA market with an operational capacity of 1.14 GW. Milan joins FLAPD with 990 MW in active capacity and pipeline.
