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Local expertise for global players

The real estate market for hyperscale and wholesale data centers is growing rapidly in Poland, but developing them is, to some extent, an obstacle course. Partnering with the right local developer on such…

Lilia Laudy April 20, 2022 3-minute read
A row of server racks in the data center, illuminated by blue and red lights, with the LEDs on the enclosures turned on

The real estate market for hyperscale and wholesale data centers is growing rapidly in Poland, but developing these projects is, to some extent, an obstacle course. Partnering with the right local developer on such projects saves global giants a lot of time, hassle, and costly surprises, explains Oliwer Goliński, a data center development specialist at 7R.

The warehouse developer is actively expanding its operations in the data center segment, focusing on large-scale data centers under the BTS (Built-to-Suit) model (BTS)“Built-to-Suit” (BTS) is a model for commercial real estate development—most commonly for warehouse or industrial properties—designed and built from the ground up to meet the specific, individual requirements of a particular tenant. Unlike ready-made speculative space, a BTS facility is built to order, taking into account the client’s unique technological processes, layout of the facilities, and technical specifications.Read the full definition → and BTO (Built-to-Own) (BTO)Built-to-Own (BTO) is a model for commercial real estate development—warehouse or manufacturing—in which a developer designs and builds a facility directly for the client’s ownership. In this model, the investor becomes the sole owner of the property upon completion of construction, financing the entire project with its own funds or a bank loan.Read the full definition →. These facilities will serve cloud giants and international data center operators, which are growing on the wave of so-called “cloud regions” currently emerging in Poland—that is, locations offering greater availability and competitiveness of various cloud services.

These clients have high expectations and strict guidelines, and often bring standardized designs from previous international projects that must be adapted appropriately and efficiently to the Polish market and its requirements, as the industry aims to deliver such a facility quickly—within approximately 18 months.

“Such timelines are not possible without so-called pre-development, which takes into account in advance the timely preparation of permits and the securing of utilities, including the contracting of above-standard connection capacities that are critical for data centers,” says Oliwer Goliński.

7R has a broad portfolio of properties designed for data center facilities and experience in delivering spaces that ensure the uninterrupted operation of advanced technical infrastructure.

“Our pre-development phase prepares the site for both data centers and warehouses. Thanks to this approach, we are able to offer properties to various client groups while minimizing the risks on our end. Without this strategy, speculative development of properties for data centers would not be possible,” adds Oliwer Goliński.

Local experience is worth its weight in gold

A lack of familiarity with local practices, the complexities of administrative processes, or the absence of reliable partners—such as architectural firms, general contractors, and experts in local and municipal cooperation—can prove costly for foreign investors. For example, securing the necessary utility connections alone—though crucial—is often difficult, time-consuming, and requires a good understanding of suppliers, their procedures, and capabilities. Thanks to the developer’s strong local relationships and experience, the tenant or buyer of a data center doesn’t have to worry about this.

“This local know-how is often a decisive factor in securing approval from utility providers, who sometimes have to rebuild the entire power infrastructure in the area specifically for the data center,” says Oliwier Goliński. “You need to know how to handle such an application and how to negotiate with suppliers; without this knowledge, we risk losing even several months in the project implementation process. Working with an experienced developer is a huge business and cost advantage,” he explains.

Industry reputation

Given the nature of the market, timely and seamless project execution is strategically important and challenging for developers themselves. Hyperscale data centers are expensive to build and are typically constructed using a just-in-time model, which means that the tight schedule leaves no room for major errors or delays.

Moreover, despite the enormous demand and growth, the market is also very niche: it consists of just a dozen or so end customers. This means that if a developer fails to successfully complete a project for one of them, they can hardly expect to continue working in this sector in the future.

“The stakes are high. With our experience in delivering dozens of industrial projects in recent years, we know what to expect,” emphasizes Oliwer Goliński.

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Lilia Laudy

Lilia Laudy

Marketing & Digital Manager

Lilianna Laudy serves as Digital & Marketing Manager at 7R SA, where she is responsible for developing digital and marketing initiatives that support brand visibility and online communication…

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