Press Release, 30 April 2012

Data centre market in Central and Eastern Europe is booming

In the next three years a total of 50,000 m2 net floor surface for colocation and hosting services in commercial data centres in Central and Eastern Europe will be added. Poland will continue to be the leading data centre location. Consolidation tendencies will gather momentum.

Current situation

According to the PMR latest report „Data centre market in Central and Eastern Europe 2012. Market analysis and development forecasts” the combined value of the data centre market in Central and Eastern Europe totalled approx. €400m in 2011, which was a growth of 13% in comparison with 2010. After a stagnation observed in 2009, the market maintained the positive double-digit growth rate experienced in 2010. Poland is by far the largest data centre market in CEE, both in terms of net floor surface of commercial data centre facilities as well as combined revenues from data centre services provision. In 2011 a total of 31% of the overall data centre capacity accounted for Poland, followed by the Czech Republic, Hungary, Bulgaria, Romania and Ukraine.

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The data centre market in CEE has been strongly evolving in the last years, trying to catch up with the global industry trends. At present, the key features of the data centre market in the CEE include:

● in the past tendency to set up small, basic level, and in-house data centre facilities – most requirements are retail colocation focused

● new facilities being constructed to international standards ● data centre services most often provided as an extra to traditional carrier services

of telcos ● majority of new supply in the region provided by local domestic data centre oper-

ators ● most activity in capital cities (Prague, Budapest and Warsaw) ● fragmented market – but first signs of local consolidation ● limited capital for investment.

Market outlook for CEE

Forecasts for the data centre market in Central and Eastern Europe are positive. Especially in a short term it would be difficult to assume the market will slow down significantly or decline. Even the constant pressure on prices, which decreases the competitiveness of the local markets compared to Western European and Scandinavian countries, can now do sector almost no harm. The data centre market will continue to grow posting double-digit numbers both in terms of revenues of the market participants and the offered floor space. Only in 2012 PMR expects the growth rate of 16%. It is possible that the market may grow even twice as fast, especially that it may be strongly influenced by one-time events and projects which may distort its value significantly.

It is worth noting that almost all of the major data centre service providers PMR canvassed indicated that they planned to increase their current floor surface in the next one to two years, either by enhancing and rebuilding their current locations or by investing in building facilities in new locations. All in all, PMR assumes that the data centre market will continue to be the market of the seller, with double-figure margins and possibility of investment to increase the current capacity. Over the next three years, approx. 50,000 m2 of data centre floor space for colocation and hosting services will be added in the CEE region. The increasing floor space in data centres, competitive prices and a stable macroeconomic environment will be increasingly encouraging large

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companies to remove and relocate their server space to the facilities in Central and Eastern Europe. This in turn will positively affect the revenues of the providers.

Major factors influencing the situation on the data centre market in the CEE in the coming years will be: evolution of energy prices, the level of demand for data centre services from the largest clients, growing amount of data transferred within telecommunications networks, growing popularity of online based and cloud services as well as hardware virtualisation services, mergers and acquisitions activity and entrance of new foreign players to the data centre market.

This press release is based on information included in the PMR report “Data centre market in Central and Eastern Europe 2012. Market analysis and development forecasts”.

You are welcome to contact the author of the report:

Pawel Olszynka, Head IT&Telecoms Analyst

tel. /48/ 12 618 90 01

e-mail: pawel.olszynka@pmrpublications.com

For more information on the report please contact:

Marketing Department:

tel. /48/ 12 618 90 00

e-mail: marketing@pmrcorporate.com

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About PMR

PMR (www.pmrcorporate.com) is a British-American company providing market informa-tion, advice and services to international businesses interested in Central and Eastern European countries as well as other emerging markets. PMR's key areas of operation in-clude business publications (through PMR Publications), consultancy (through PMR Con-sulting) and market research (through PMR Research). Being present on the market since 1995, employing highly skilled staff, offering high international standards in projects and publications, providing one of most frequently visited and top-ranked websites, PMR is one of the largest companies of its type in the region.

PMR

ul. Dekerta 24, 30-703 Krakow, Poland

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tel. /48/ 12 618 90 00, fax /48/ 12 618 90 08

www.pmrcorporate.com

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