Cushman & Wakefield Echinox: Romania has many advantages for attracting investments in data centers
<p>Romania benefits from a series of favorable factors that facilitate the growth and expansion of data center capacity and could emerge as a developing market, according to an analysis conducted by the real estate consultancy company Cushman &amp; Wakefield Echinox.&nbsp;</p>
<p>A diversified energy mix, with over 50% of energy production coming from renewable sources, along with a stable and reliable power grid, are among these factors. Additionally, investments in optical fiber networks have contributed to the quality and speed of the internet, other essential factors for the efficient operation of data centers.&nbsp;</p>
<p>Access to a skilled IT workforce, competitive labor costs, and a secure cybersecurity environment aligned with European standards are also key strengths that could attract the attention of data center developers and operators.&nbsp;</p>
<p>Furthermore, Romania benefits from EU-supported digitalization initiatives and national projects aimed at enhancing the digitalization of the business environment and public services. In terms of environmental factors, Romania’s location within a temperate climate helps reduce cooling costs for data centers. Moderate outdoor temperatures allow for the use of natural cooling technologies, improving energy efficiency and lowering the carbon footprint.</p>
<p>Although they typically represent a fraction of the total costs, elevated land prices can pose significant barriers to entry, especially in prominent markets known for large-scale deployments. The availability of land further enhances Romania’s attractiveness, offering opportunities to secure plots at competitive prices in low- risk areas.&nbsp;</p>
<p>However, despite the unprecedented growth of global data center markets, Romania’s data center capacity remains relatively modest. The total installed capacity is currently below 100 megawatts (MW), which is low compared to other countries in the region.&nbsp;</p>
<p>“Although the local market capacity is relatively limited, Romania offers a favorable entry point for international developers looking to capitalize on the advantages of an emerging market. With robust IT infrastructure, a skilled workforce, and a supportive climate, Romania has the potential to become a key hub in the regional data center landscape,” says Laura Bordianu, Data Analyst Research Department Cushman &amp; Wakefield Echinox. Centers could be located in cities like Cluj-Napoca, Timisoara, and Iasi, aside from Bucharest, she argues.</p>
<p>Currently there are 59 data centers spread across the country. The largest concentration is in Bucharest, which hosts 27 data centers. Other notable locations include Timisoara with 9 data centers, Cluj-Napoca with 8, and Brasov with 4.</p>
<p>In Mișchii, in the Dolj Country region, Cluster Power is building the largest hyperscale data center in the country, with a planned operational capacity of 200 MW.&nbsp;</p>
<p>One of the main factors driving the growing demand for data center capacity is the expansion of cloud-based services. A large percentage of the total available data center capacity in mature markets is used by cloud platforms (25% in EMEA, 40% in the Americas), however, in Romania there is no large cloud operator (Amazon, Microsoft Azure, Google) present on the market at the moment.&nbsp;</p>
<p>The global data center industry is also experiencing substantial growth, driven primarily by demand for artificial intelligence, the adoption of cloud services, and digital transformation across various sectors. Tech giants such as Amazon, Google, Meta, Microsoft, and Oracle are continuously expanding their infrastructure, fueling global demand for data center capacity. In secondary markets such as Romania, the opportunities for sustainable growth and capacity expansion are considerably higher.&nbsp;</p>
<p><em><a href="mailto:radu@romania-insider.com">radu@romania-insider.com</a></em></p>
<p><em>(Photo source:&nbsp;<a href="https://www.dreamstime.com/primakphoto_info">Katrin Primak</a>&nbsp;|&nbsp;<a href="https://www.dreamstime.com/">Dreamstime.com</a>)</em></p>