The Poland data center colocation market has been witnessing significant growth over the past few years. Data center colocation refers to renting or leasing of dedicated physical space, cooling, network connectivity within a data center to house and run a company's IT infrastructure. The market has been growing owing to the increasing need for companies to rent data center space from specialized operators rather than maintaining data centers on their own. By opting for colocation services, companies can benefit from lower upfront costs, greater flexibility, easier scalability, managed security services, guaranteed uptime, and redundancy. The demand is particularly high from SMEs that lack the capital expenditure required to maintain their own data centers.
Key players operating in the Poland data center colocation are Teva Pharmaceutical Industries Ltd., Solara , Aurobindo Pharma Limited, Dr. Reddy's Laboratories, Lupin Limited, Sun Pharmaceutical Industries Limited, Divi€TMs Laboratories Ltd., Aarti Drugs Ltd., Hikal Ltd., Neuland Labs, Century Pharmaceuticals Ltd., Proventus Life Sciences Pvt Ltd, Chiral Drugs Pvt Ltd, USV Private Limited, and ASolution Pharmaceuticals Pvt. Ltd. Teva Pharmaceutical Industries Ltd. holds the leading position in the market with a market share of around 25%.
The Global Poland Data Center Colocation Market Size offers numerous opportunities for growth owing to increasing digitalization among enterprises across industries. The growing adoption of cloud services, big data analytics, and IoT among Polish businesses is driving the need for more flexible, scalable and cost-efficient colocation services.
Major data center operators are actively expanding their footprint in Poland to tap the growing demand from local as well as international enterprises. For instance, Digital Realty recently announced plans to develop a new data center campus in Warsaw, Poland to support hyperscale growth. Global colocation providers such as Equinix and Interxion are also expanding their presence in Poland.
Growing demand for scalable and flexible colocation infrastructure among SMEs: More small and medium enterprises in Poland are opting for data center colocation as it provides flexible, scalable and cost-effective IT infrastructure compared to owning an on-premise data center. This is a major driver for the market growth.
Increasing digital transformation activities among enterprises: Digital technologies such as cloud computing, big data analytics, AI and IoT are being widely adopted by businesses in Poland. This is increasing the need for securely hosting mission-critical IT infrastructure and robust connectivity, boosting the colocation market.
High initial set-up and operational costs: Establishing and operating large data centers involves huge capital and operational expenditures which is a major restraint, especially for smaller colocation providers.
Lack of standardization: Absence of standardized design, construction and operational guidelines for data center facilities poses various challenges around efficiency, reliability and service delivery. This acts as a roadblock for the Poland colocation market.
The Poland data center colocation market is dominated by the large sub-segments like retail colocation which holds more than 35% market share. Retail colocation offers colocation services and infrastructure to multiple customers. They provide options like cabinet space, cage space to house servers and storage along with basic security and bandwidth. Retail colocation sub-segment is dominating as it offers a cost-effective and flexible option to enterprises having varying scale of IT infrastructure needs.
Regionally, Western Poland region holds the highest market share of over 30% in the Poland data center colocation market. Cities like Warsaw, Poznan are some of the major data center hubs in Western Poland region. The region witnesses higher demand for colocation space owing to availability of reliable power infrastructure, connectivity and presence of major cloud service providers and internet exchanges. The Western Poland region is expected to continue dominating the Poland data center colocation market during the forecast period due to significant investment planned by colocation operators for expansion of their existing facilities and development of new data centers in the region.
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