In recent years, Poland has attracted increased investment in data centers. In 2023, two major hyperscalers have announced that they will deploy data centers in Poland. Poland is home to globally recognized data center developers as well as a variety of local companies. In recent years, especially since the pandemic, there has been increased interest from developers around the world. Geographically, large data centers are mainly concentrated in the Warsaw region.
However, as in other countries, the further development of the Polish data center market largely depends on special planning rules and power availability.
Special Project – Groundbreaking Moments
When it comes to special planning, there are two important issues that have a major impact on data center projects.
First, there are relatively low limits on data center projects. From a planning point of view, data center development in Poland is not much different from traditional projects. Because neither national law nor general local master plans impose specific restrictions on data center development, such projects are likely to be located on a relatively large number of sites, particularly on many of the sites designated for general services development. can.
Secondly, there was a breakthrough moment in spatial planning in Poland. This is a major amendment to the 2023 Spatial Planning Regulations. While some changes are already in effect, certain major new restrictions have not yet been applied. The new law has created new opportunities, such as a special type of local planning (integrated investment planning). This creates new possibilities for municipalities and investors to agree on specific investments, for example, in exchange for the investor's financial participation in significant investments. For the community. However, under the new law, a general development plan must be enacted by December 31, 2025, which could limit the possibility of new development in certain areas. there is.
In general, it is unlikely that data center planning requirements will suddenly increase. Nevertheless, in the current legal environment, a detailed permitting strategy for the investment process is important. Also, depending on the exact location, investors may prefer to secure permits before a general plan for a particular area is adopted.
Electrical connection conditions
So far, data center developers entering the Warsaw region have been able to secure the power they need to build new hyperscale data centers. However, the increasing demand for power connectivity and the emphasis on large-scale data centers (100 MW and above) powered by AI are raising questions about the future.
An important step in securing power is obtaining connection conditions from the relevant power grid operator. The connection terms are valid for two years and there are no significant costs at this initial stage.
Network operators are obliged to issue connection conditions on the basis of equal access. Although there is an obligation to provide a connection to the network, the law specifies two commonly defined grounds for refusal: insufficient technical or economic conditions for the connection; . The reason for the refusal is important, because even if it is rejected solely for economic reasons, a grid connection contract may be concluded and a grid connection fee (which may be higher than the standard rate) may be included. is. Entities denied grid connection can appeal the decision to the Commissioner of the Energy Regulatory Authority. However, the processing time in such cases will be longer.
The number of grid connection refusals is increasing. This is mainly due to the large number of ongoing and planned investments in solar power plants across Poland, putting a strain on the ability to connect new facilities to the electricity grid.
In this context, we acknowledge the statement of the Secretary of the Energy Regulatory Authority (URE) dated 22 March 2024. Although this statement was primarily issued regarding renewable energy sources, it is general and therefore applies to other connections, including data centres. Although this is not a binding law, this statement may affect network companies' practices regarding connection terms.
According to the URE President, refusal of network connection due to insufficient technical conditions should be rare and is usually Because it is possible to provide the desired connection. The President therefore urges transmission operators to avoid refusing grid connections on the basis of insufficient technical conditions (or at least on the basis of these conditions alone), and instead to reject them on economic grounds. This may suggest that we should focus on In practice, this means that grid operators should not refuse to connect large-scale developments (even those that require large power capacity), but rather encourage investors to invest in grid redevelopment. This means that they should be able to request financial participation in the
From a data center perspective, this is a move in the right direction. If network operators align their practices with the URE President's proposal, even large-scale data center projects will not have to face denial of connection terms, but construction budgets will include the cost of grid improvements. You may need to include some.