PMR Insight: Polish data centre market remains lucrative

Paweł Olszynka, Head IT&Telecoms Analyst, PMR

Last twelve months have witnessed numerous important events on the Polish data centre market. Undoubtedly the most important of them was the acquisition of 3S by the Enterprise Investors (http://www.ceeitandtelecom.com/news/238726/enterprise-investors-acquires-3s)

3S has been present on the market for 13 years. The operator owns a 2,700 km fibre-optic network in southern Poland and provides a wide range of telecommunications services to business customers, including telecommunications operators. Its offer includes dark fibre leasing, data transmission, internet access services and telephone connectivity. 3S also has two data centres located in Katowice.

Since the new investor appeared in 3S, the operator has become even more active with its expansion projects. In January 2016 3S has decided to enhance its colocation floor space by putting a signature on a long term lease contract with Euro-Centrum. We wrote about it here: http://www.ceeitandtelecom.com/news/259117/3s-lease-space-in-euro-centrum-data-centre

Moreover, 3S has also been recently rumoured to search for the possibility of investing in a completely new facility in Warsaw. 3S neither officially denies nor confirms the news which is reasonable if it seeks for an acceptable price of the plot. The owners of 3S obviously remember the case of Netia, the biggest alternative operator in Poland, which in the past started to communicate openly its data centre expansion plans and the prices of the most attractive locations suddenly went up significantly.

There is no doubt that the domestic colocation market is dominated by Warsaw operators. The analysis of the location of the 30 leading facilities confirms that trend. However, some vendors are of the opinion that today the geographical location of a data centre is without greater significance. Nevertheless, it is uncommon for most clients to place their resources in a server room located in a city other than the one in which their headquarters or their Polish office operates. Most frequently the main reason for choosing a server room in the same city is the security factor and the wish to have a backup data centre or server resources in alternative locations. On the other hand, other locations are frequently chosen because of the opportunity to receive EU co-financing, which is much less available in areas with large concentration of businesses now.

PMR analysts are currently working on the fourth edition of PMR’s annual report on the data centre market in Poland. We have already talked to various providers and data centre operators. We are planning to visit new facilities and already arranged meetings with the operators. More info about the upcoming report: http://www.pmrpublications.com/product/Data-centre-market-in-Poland-2016