Microsoft to cancel Prague data centre project due to Czech bureaucracy

20
Oct
2023
News - Microsoft to cancel Prague data centre project due to Czech bureaucracy #Czech Republic #investment #Microsoft #Prague

by Property Forum | Investment

According to three independent sources of the daily e15, Microsoft will likely cancel its plans to build a data centre in Prague. "There is still some small hope, but it is more like wishful thinking on the part of the managers of Microsoft's domestic branch," one of the sources, who did not want to be named, described the project.


As e15 has previously reported, Microsoft bought a nearly six-hectare plot in Prague 9 from CPI for CZK 1.5 billion (almost €61 million) early last year. The Ireland-based European headquarters subsequently sent CZK 4 billion (€162.6 million) to the newly created Czech entity to finance the construction. One of the world's most valuable companies also wanted to run the data centre because of the upcoming state cloud or data protection regulations. But Microsoft has run out of patience because nothing is happening on the Prague site. This could be due to the uncertainties surrounding the zoning plan, the long construction procedure or the energy situation. "The legal requirements for the construction and operation of a data centre are so stringent that perhaps no other country in the world compares," said another source. Microsoft has not yet commented on its plans, but in the meantime, it opened a data centre in Poland earlier this year, where it is investing $1 billion. In the past, Google has also started a data complex there, with the investment expected to reach up to €2 billion.

The Prague 9 city hall, through spokeswoman Maria Kurkova, said it supported the project even before buying the land and that district representatives participated in negotiations leading to the possible permit. "If we don't signal to investors that we want them, they will go elsewhere. Perhaps to Poland or Romania," summarised Zdeněk Zajíček, president of the Czech Chamber of Commerce and head of the ICT Union, of which Microsoft is a member.

 




New leases

  • UDH, one of Poland’s largest distributors of premium imported beers, has leased approximately 1,400 sq m of modern warehouse and office space at the Park Rysy Kraków distribution centre. The tenant, which has chosen to expand its operations in southern Poland, was once again represented by AXI IMMO.
  • Golden Star Estate has secured a long-term lease agreement with global technology solutions and consulting provider C&F for nearly 1,900 sqm of office space at the Konstruktorska Business Center. Following the transaction, the property, located in Warsaw’s Mokotów business district, is now almost fully leased. The Polish branch of C&F will officially relocate to the facility at the beginning of 2027.
  • Natland Group has committed to its long-term presence at Prague-based Rohan Business Center through a lease extension covering 2,004 sqm of office space, together with storage facilities and dedicated parking spaces, in a deal brokered by iO Partners.

New appointments

  • Indotek Group has announced the appointment of Diederik Bakker as Group Chief Investment Officer and Group Head of Asset Management. In his new role, the Dutch real estate investment professional will gradually assume responsibility for the company's ITAM (investment, transaction, and asset management) activities across 12 European countries, supporting the next phase of Indotek Group’s growth. His focus includes facilitating sound investment decisions across Europe and developing a group-level portfolio management strategy that combines local market knowledge with international asset management know-how.
  • Peakside Capital Advisors has appointed Bogi Gabrovic to advise the board and support its investment and acquisition activities in Poland. Gabrovic brings more than 25 years of CEE real estate experience to the role, having previously held senior executive positions at CTP, Golub & Company, and White Star Real Estate, where she managed transactions exceeding €2 billion.
  • Katarína Brydone, Jana Vlková and Vendula Maršová have been appointed as the first Equity Partners of Colliers’ Czech business. Brydone brings more than 20 years of experience in international real estate. Vlková has more than 25 years of experience in commercial real estate. Maršová, Partner and Head of Valuation and Advisory Services, brings more than 16 years of experience in real estate valuation and advisory.

Property Forum ABOUT US

Property Forum is a leading event hub in the CEE real estate industry with over 10 years of experience. We organise conferences, business breakfasts and workshops focused on real estate, in London, Vienna, Warsaw, Budapest, Bucharest, Bratislava, Prague, Zagreb and Sofia, amongst other locations.
Please send press releases to
newsdesk AT property-forum DOT eu
MORE >

CONTACT

NEWSLETTER

 

Property Forum © 2017 – 2026 | Terms & conditions | Privacy policy