Bucharest included in ranking of cities with highest potential for AI data center development
Romania’s capital ranks 21st in the Savills Power and Place Index, the global ranking that assesses cities with the strongest potential for future data center development based on criteria such as energy availability, telecommunications infrastructure, access to resources and project delivery capability.
According to Savills’s report, the next wave of investment in digital infrastructure will increasingly target markets capable of supporting the accelerated expansion of artificial intelligence. The same report showed that global investment in data centers has reached record levels, fueled by the expansion of major hyperscale operators and growing demand driven by artificial intelligence. In this context, the challenge is no longer the availability of capital, but rather identifying locations capable of providing the power, land and infrastructure required for large-scale developments.
Savills highlighted that many established European hubs are already experiencing limitations related to power grid capacity, land availability and permitting processes, creating opportunities for emerging cities and markets with greater resource availability.
According to real estate consultant Crosspoint Real Estate, Romania benefits from several structural advantages relevant to digital infrastructure development. These include a high level of fiber-optic coverage, competitive internet speeds and affordable data service costs, all of which support large-scale data transfer and processing.
At the same time, data consumption continues to grow rapidly both in Romania and across the Central and Eastern European region, driven by the expansion of cloud services, the digitalization of the economy and the integration of artificial intelligence solutions into business operations. This trend is increasing the need for local and regional digital infrastructure and is supporting the development of data centers located closer to end users.
At present, however, one significant disadvantage is the cost of electricity. Nevertheless, with the commissioning of the Iernut and Mintia power plants, as well as the projected development of energy storage facilities in the medium term, Romania could become increasingly attractive for this segment.
“While traditional European hubs are facing increasing constraints related to energy access, land availability and development restrictions, Bucharest is emerging as a well-positioned market for the next wave of investments in digital infrastructure supporting AI development. For data center investors, access to power and connectivity is becoming just as important as location,” said Emilian Podaru, MRICS, Head of Industrial & Logistics at Crosspoint Real Estate, the International Associate of Savills in Romania.
The report estimated that data center expansion will also have a significant impact on the industrial and logistics sector. Across Europe, the growth of this ecosystem could generate additional demand for approximately 790,000 sq m of logistics space over the next three years, required for storage, equipment, operations, and related services.
(Photo source: Katrin Primak|Dreamstime.com)
