Poland has emerged as a top destination for data center colocation in recent years in Europe. The country offers several advantages for companies looking to colocate their IT infrastructure including affordable real estate, renewable energy sources, a skilled workforce, and strong connectivity. Let's take a closer look at some of the reasons driving Poland's rise as a preferred colocation hub.

Cost Competitiveness

One of the biggest draws of Poland For Data Center Colocation is the lower costs compared to other major European markets. Real estate, construction, and operational expenses are considerably lower in Poland. Rent for commercial and industrial real estate is up to 60% cheaper than in Western European nations. This significant cost advantage allows colocation providers to offer competitive pricing to customers. Lower taxes are also beneficial, with corporate income tax at a flat rate of 19%. The combination of affordable real estate and tax incentives helps data centers achieve strong return on investments.

Abundant Renewable Energy

Poland has prioritized the development of renewable energy sources in recent years. The country generates over 15% of its electricity from renewables with targets to increase this to 21% by 2020 and 23% by 2030. Data centers colocating in Poland benefit from access to clean and affordable renewable energy like hydro, wind, biomass and solar. This helps reduce power costs over the long run and allows providers to market themselves as green colocation choices. Many major cities in Poland now source over 25% of their energy from renewable sources.

Superior Connectivity

Poland is highly connected with the rest of Europe through extensive fiber infrastructure and a centralized location. The country lies at the crossroads of western and northern Europe, providing a gateway for traffic flowing between Germany, Scandinavia and the Baltics. Over 30 international networks land in Poland, including major routes like DE-CIX Frankfurt. Major cities have redundant routes with capacities over 100Gbps. Carrier-neutral data centers offers connections to all major cloud and internet exchanges. This superior connectivity lets Polish data centers effectively deliver applications across Europe.

Talented IT Workforce

Poland has developed a sizable skilled workforce with expertise in IT services and infrastructure management over the past decade. Leading engineering schools and technical universities graduate over 20,000 IT specialists annually. English proficiency is widespread and operational costs are lower versus Western nations. Data center operators appreciate the availability of local talent for staffing diverse roles including design, deployment, client support and facilities maintenance. Having access to a large skilled labor pool eases expansion plans for colocation providers.

Pro-Business Regulatory Environment

The Polish government actively promotes the growth of the digital economy and data center industry through favorable policies. Operators setting up greenfield data center campuses receive substantial tax incentives. Power outages are rare with the national grid rated amongst the most reliable in Europe. Data sovereignty regulations are friendly compared to nations like Germany, with a lack of data localization requirements. Colocation providers appreciate the pro-business regulatory environment streamlining operations. Strong intellectual property protections further boost Poland's appeal as a data center hub.

Rising Domestic Demand

As the Polish economy digitalizes rapidly, local demand for colocation and cloud services is surging. Major industries switching workloads to the cloud include banking, telecom, manufacturing, retail and government. This growing indigenous customer base provides an additional revenue stream for colocation providers. Local companies prefer housing infrastructure within Poland for better performance and regulatory compliance. Additionally, international firms now increasingly serve the Polish market from within the country to address data sovereignty needs. This rising domestic market further reinforces Poland's position as a strategic data center destination.

In conclusion, with favorable costs, renewable energy sourcing, connectivity options, workforce skills and regulations; Poland has emerged as one of the most competitive data center colocation hubs in Europe. International cloud providers and enterprises are taking greater advantage of its strengths to deliver low-cost infrastructure and innovative digital services across the region and beyond. As central and eastern Europe undergo continuing digital transformations, Poland's prominence as a colocation epicenter looks set to grow even further.

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