In the realm of data centers, Charles Bruinvels, the Head of Land Intelligence at BCS, emphasizes the importance of following a strategic approach to convert underserved markets into thriving regional hubs. This involves prioritizing power and fiber infrastructure and leveraging industry associations to pave the way for successful development in emerging markets like Athens, Crete, Cyprus, Bucharest, Sofia, and Istanbul.
The data center landscape in South-Eastern Europe is rapidly evolving, fueled by a combination of geopolitical, economic, and technological factors. As demand surges in key locations, such as Athens and Istanbul, understanding the on-the-ground realities is crucial for investors and operators. Learning from past experiences in Western Europe, where mistakes were made during data center rollouts, is essential for success in these frontier markets.
One of the key takeaways from discussions on emerging markets is the existing infrastructure in the region, including established subsea cables across the Mediterranean and Black Sea. This infrastructure connectivity, particularly in locations like Crete with multiple landing stations and connections to major hubs, enhances accessibility and attractiveness for data center development. Additionally, the availability of reliable renewable energy sources in these markets, alongside efforts to increase renewable power generation targets, further strengthens the appeal for sustainable data center operations in the region.
While the potential for establishing regional hubs in South-Eastern Europe is promising, challenges such as political and economic volatility, regulatory hurdles, and a shortage of specialized data center talent need to be addressed. Collaborating with local universities, investing in workforce development programs, and navigating regulatory complexities will be crucial for overcoming these obstacles and accelerating the growth of the data center industry in the region. By adopting an infrastructure-first approach and drawing upon lessons learned from Western Europe, opportunities for efficient data center construction and growth in South-Eastern Europe can be maximized.
