THE FUTURE OF DATA CENTRES IN POLAND

1. What are the challenges I might face when trying to develop a data centre in Poland? 

• Power Supply: The high energy demands of data centres, combined with expensive electricity, a relatively low share of renewables, and geopolitical uncertainties, continue to be the main challenges for their development in Poland. With only 30% of the national energy mix coming from renewable sources and a significant share of production from coal-fired power plants, operators face growing pressure to secure reliable, sustainable power while keeping operational costs under control.

At the same time, demand is accelerating, fuelled by AI adoption, cloud computing, and rapid digitalisation. This makes innovative solutions increasingly urgent, including onsite renewable generation and direct private-wire agreements – both still in the early stages in Poland. The challenge is not just financial but also environmental. High power consumption and continuous cooling contribute to a significant carbon footprint, particularly for hyperscale facilities. As a result, energy efficiency has become central to long-term planning.

• Regulations: Adding to the complexity are regulatory requirements, particularly under the European Union’s (EU) Energy Efficiency Directive. The directive sets strict standards for energy and water efficiency, low-emission systems, and waste-heat recovery. For Polish operators, this translates into investments in advanced cooling technologies, infrastructure modernisation, and partnerships with district heating providers – although waste-heat utilisation remains largely untapped in Poland.
• Planning Process and Land Supply: Suburban areas around major Polish cities, such as Warsaw, are often preferred for data centre development due to flexible zoning, available land, and proximity to critical infrastructure like power lines and fibre-optic networks. However, the following factors make location planning particularly challenging in Poland compared to other European markets.
• Fragmented Planning and Permitting: Poland currently lacks dedicated planning regulations or designated zones for data centres. Unlike in, for example, Germany and France, where some regions have designated zones and predictable permitting procedures for data centres, Polish developers must navigate a patchwork of local zoning rules and environmental approvals, often facing delays and uncertainty.
• Limited Land Supply and High Competition: Suitable plots near essential infrastructure are scarce. Developers compete not only with other data centres but also with industrial, logistics, and commercial investors. This high demand pushes up land prices and can extend acquisition timelines. In practice, securing a single well-located plot may take months or even years, especially near Warsaw or other major tech hubs.
• Infrastructure Constraints: While urban areas have strong energy and connectivity networks, suburban sites may lack redundant power lines, sufficient grid capacity, or fibre-optic redundancy. Ensuring reliable energy supply, low-latency connectivity, and access to skilled personnel adds further complexity. Developers must carefully evaluate each site’s technical feasibility and often invest in additional infrastructure upgrades before construction can begin.

2. How is Poland addressing the challenges of power supply and the planning process?

Poland is gradually introducing measures to align with EU standards while also supporting market-led solutions. 

• Energy and Grid Modernisation: The national grid operator has committed to expanding transmission capacity for large-scale facilities under its 2025-2034 Grid Development Plan. Further, the National Energy and Climate Plan anticipates electricity costs for industry falling by up to 28% by 2040, compared to 2025 projections. This reduction is expected to result from investments in renewable energy, improved efficiency, and lower carbon-related costs under the EU’s Emissions Trading System. For energy-intensive sectors like data centres, these measures could significantly enhance competitiveness and support further expansion in Poland. Furthermore, Poland’s shift towards renewables, targeting over 50% of its energy mix by 2030, makes it increasingly attractive to investors who are now highly prioritising sustainability.
• Emerging Locations and Land Availability: With land in Warsaw becoming increasingly scarce and expensive, Poland is encouraging data centre investment in secondary hubs such as Poznań, Gdańsk, Wrocław, and Łódź. These cities offer more available land, flexible zoning regulations, and access to key infrastructure corridors, making it easier for developers to establish new facilities. By supporting growth outside the capital, Poland aims to balance regional demand, reduce congestion risks, and diversify the country’s digital infrastructure footprint.
• Industry-Government Dialogue: The establishment of the Polish Data Centre Association in 2023 has created a structured channel between operators and policymakers. One of its priorities is to streamline planning and permitting, which currently requires navigating a patchwork of local regulations. While Poland does not yet have designated zones for data centres, discussions are underway on how to make approvals faster and more consistent across municipalities.

3. What other changes could be made to help the data centre industry grow and stay competitive in Poland? 

Looking ahead, Poland has a real opportunity to strengthen its position as a regional hub for digital infrastructure. Beyond existing initiatives, several additional measures could help accelerate growth:

• Dedicated Zoning for Data Centres: Creating designated zones with pre-approved planning frameworks would shorten permitting processes and reduce uncertainty. Strategically locating such zones near renewable energy sources and fibre-optic corridors would also address key infrastructure challenges.
• Fast-Track Permitting for Green Projects: A streamlined approval pathway for facilities that meet defined sustainability standards (e.g., renewable energy sourcing, waste-heat recovery, or advanced cooling technologies) could incentivise greener development while cutting red tape.
• Policy Support for Private Energy Solutions: Encouraging wider use of private wires and long-term corporate power purchasing agreements would give operators more control over energy sourcing. This would reduce pressure on the national grid and accelerate Poland’s renewable energy transition.
• Targeted Incentives: Tax credits, grants, or preferential financing for projects that integrate ESG best practices or develop in underserved regions could help balance national growth and attract foreign investment.