Microsoft Azure: Microsoft withdraws plans for Czech data center

Oct 24, 2023 | Posted by Abdul-Rahman Oladimeji

Tech giant Microsoft has reportedly canceled plans for a data center in Prague in the Czech Republic due to  "complex bureaucracy and long wait times for decisions." An E15 source noted, "A certain small hope is still alive, but rather it is wishful thinking of the managers of the domestic branch of Microsoft.”

Microsoft acquired plots of land in Prague's Klíčov district from the CPI group of billionaire Radovan Vítek for 1.5 billion crowns ($64.5 million) last year. At the time, Microsoft said, "In connection with the purchase of the land, we currently have no further information. We can confirm our continued determination to strengthen the digital transformation of the Czech Republic through Microsoft's cloud services.”

Reports from E15 notes that Microsoft has now ‘run out of patience’ due to ambiguities surrounding the spatial plan, long construction procedures, and the energy situation. “Legislative requirements for the construction and operation of a data center are so strict that it is unmatched by any other country in the world," a source told the outlet. 

Jiří Janák, Prague 9 councilor for territorial development said, "This is not the first large investor to lose interest in developing his land in Prague due to ambiguities surrounding the spatial plan, which is under the responsibility of the capital city. This uncertainty is reflected in the fact that investors are gradually leaving Prague and the Czech Republic and moving their investments to neighboring states that have a predictable city development policy.”

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