Microsoft’s data centre worth billions will probably not be in Prague
Microsoft has decided to abandon its plans to build a data centre in Prague because of the excessive bureaucratic burden. The company bought a plot of land in Prague last year for one and a half billion crowns with plans to invest five and a half billion crowns. However, sources close to the deal suggest that strict legislative requirements for data centre operations in the Czech Republic and complex zoning created complications that led to Microsoft’s decision to pull out of the project.
According to one of the unnamed sources, the legislative requirements for data centres in the Czech Republic are extremely stringent and the unclear situation in zoning and the slow construction process do not help. Sources say that although there is some hope that the project could be revived, this hope seems to be more wishful thinking.
Microsoft has a long history in the Czech Republic and has an office in Prague, one of its largest development centres in Central and Eastern Europe. The team here develops applications such as Teams and Skype and serves hundreds of millions of users worldwide.
The land in Prague was purchased from the CPI Group to be used for the construction of a four billion CZK data centre. Given the current circumstances and obstacles, it seems that this investment will not take place in the Czech Republic and Microsoft will focus on other projects in the region.
This decision by Microsoft shows that bureaucratic and legislative obstacles can be a challenge for technology companies attempting to invest in the Czech Republic.
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