Austria in upheaval: why data center space in Vienna is a sought-after commodity

The data center market in Austria, especially in Vienna, is currently growing rapidly. Despite its current total area of 5,600m², our Vienna 1 Data Center has reached its capacity limit. Many new interested parties – but also existing clients – are eagerly awaiting the expansion of the data center.

From summer 2022, a further 3,000 m² of IT space will be available on the campus in a third data center. It’s already becoming apparent that the planned Building C will quickly be fully occupied.

But what are the reasons for this enormous growth of the data center market in Austria?

Digital transformation and more

On the one hand, the digital transformation that can be observed worldwide has also affected Austria. On the other hand, digital processes are now taking place in all areas of our lives. From cashless payment transactions to household appliances with interfaces, to the internet and autonomous driving: data is generated everywhere that must be transmitted and processed quickly and reliably. During the pandemic, homeschooling and increasingly working from home were added as further challenges.

But these aspects apply to most industrialized nations. It’s also important to consider the country-specific reasons for the increasing demand for data center capacity in Austria.

Above all, the historical and spatial proximity to neighboring countries in Eastern Europe can be cited here. Bratislava, Budapest, Prague, Ljubljana, Zagreb – all these capitals are in close contact with Vienna. Organizations therefore see Vienna as the “gateway to the East”. Starting from a data center in Vienna, the IT infrastructure can be efficiently expanded in the direction of the former Eastern Bloc countries.

At the same time, the monetary aspect is also convincing: the price of electricity in Austria is almost a third lower than in Germany or Switzerland. While consumers in Germany usually pay more than 29 cents per kW/h, in Austria it’s only 18 cents per kW/h. This is a difference that is quite noticeable when operating a data center. Combined with the above mentioned point of being regarded as a gateway to the East, this creates a valid argument for the commitment of numerous global corporations on Austrian soil.

• ALSO READ → Federal Minister Margarete Schramböck visits NTT DATA’s Vienna 1 Data Center site

Taking the lead in innovation

The City of Vienna’s Smart City Initiative is also boosting the growth of the local data center market. One of the three defined core goals of the initiative is to make Vienna an innovation leader and the digitalization capital in Europe by 2030. Whether it’s IT security concepts based on technologies like blockchain and encryption, smart living, networked and sustainable mobility, or the Digital Health City Vienna – Smart City Vienna covers all areas of daily life and one thing is clear: a lot of data is created here that must be securely transmitted and stored.

The result of these observations? The volume of data in Austria, and especially in Vienna, will continue to rise rapidly in the coming years. Organizations and authorities that want to position themselves successfully and strive for sustainable solutions should be thinking about the needs of tomorrow, today.