Romania Data centres to boom in Romania?

Such factors include a diversified energy mix, with over 50 pct of energy production coming from renewable sources and a stable and reliable power grid. Additionally, investment in optic fibre networks has contributed to the quality and speed of the internet in the country.

Other key strengths include access to a skilled IT workforce, competitive labour costs, and a secure cybersecurity environment aligned with European standards.

Romania’s location within a temperate climate helps reduce cooling costs. Moderate outdoor temperatures allow for the use of natural cooling technologies, improving energy efficiency and lowering the carbon footprint.

Land costs continue to be a critical focus for managing expenses when it comes to data centre development. 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.

However, despite the unprecedented growth of global data centre markets, Romania’s data centre capacity remains relatively modest. The total installed capacity is currently below 100 megawatts (MW), which is low compared to other countries in the region.

Although the local market capacity is relatively limited, Romania offers a favourable entry point for international developers looking to capitalise 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 centre landscape. Besides Bucharest, other regions in Romania also hold significant potential for data centre investment. Cities such as Cluj-Napoca, Timișoara, and Iași offer strong infrastructure, access to qualified talent, and advanced digital connectivity. These locations are attractive to operators seeking to expand and leverage the benefits of the nascent local market.
Laura Bordianu, data analyst research department Cushman & Wakefield Echinox

The local data centre market is dominated by Romanian operators with a small average size. Currently there are 59 data centres spread across the country. The largest concentration is in Bucharest, which hosts 27. Other notable locations include Timișoara with nine, Cluj-Napoca with eight, and Brașov with four. In Mischii, in the Dolj Country region, Cluster Power is building the largest hyperscale data centre in the country with a planned operational capacity of 200 MW.

One of the main factors driving the growing demand for data centre capacity is the expansion of cloud-based services. A large percentage of the total available data centre capacity in mature markets is used by cloud platforms (25 pct in EMEA, 40 pct in the Americas), however, in Romania there is no large cloud operator present on the market at the moment.

The global data centre industry is experiencing substantial growth, driven primarily by demand for artificial intelligence (AI), the adoption of cloud services, and a digital transformation across various sectors. Tech giants such as Amazon, Google, Meta, Microsoft, and Oracle are continuously expanding their infrastructure, fuelling global demand for data centre capacity.

Data centre markets in Western Europe, North America, and Asia face significant constraints, including scarce land availability, stringent sustainability regulations, increasing power costs, and power availability challenges. These factors create substantial hurdles for data centre developers, operators, and investors, impacting timelines, operational costs, and investment predictability. As a result, the industry is progressively shifting attention towards secondary markets, where opportunities for sustainable growth and capacity expansion are considerably higher.

The data centre market in the EMEA region has seen significant growth. The operational capacity of data centres across the EMEA region has now reached around 9.4 gigawatts (GW). Additionally, there are projects under construction with a combined capacity of 2.9 GW, while a further 8.7 GW is being planned, making an overall pipeline growth of around 16 pct year-on-year.

This expansion is particularly evident in primary hubs such as Frankfurt, London, Amsterdam, Paris, and Dublin (FLAPD), which collectively account for a substantial portion of the region's data centre capacity, with 4.26 GW in live capacity. London continues its EMEA market lead with 1.14 GW operational capacity. Milan is joining FLAPD with 990 MW in live and pipeline capacity.

The market is characterised by the presence of colocation providers such as Equinix, Digital Realty, NTT Global Data Centers, and Colt Data Centre Services. These companies offer extensive colocation and interconnection services across multiple European countries. In addition, hyperscale operators such as Amazon, Microsoft, Google, and Meta are investing heavily in the region, focusing on the development of large-scale facilities to support their cloud expanding and AI services.