Time-focused approach or emphasis
In the rapidly evolving digital landscape of Russia, the demand for data center capacity is on the rise, driven by the increasing interest in cloud and AI services among both state and private companies. This trend is expected to result in a surge of new data center construction, according to Ilya Korolev, director of strategy at cloud and AI technology provider Cloud.ru.
The growth in demand for data center capacity may lead to increased requirements for technological capabilities, such as cooling and rack energy density. To encourage this growth, the government and private investors are offering incentives like cheaper credit resources, increased free power capacity for data centers, subsidies for connecting to sites, and preferential tariffs.
The uneven distribution of data center service consumption in Russia, with a strong concentration around Moscow and St. Petersburg, is influenced primarily by the concentration of digital infrastructure, innovation ecosystems, and government support in these cities. Moscow, in particular, boasts the highest concentration of data centers, fiber-optic networks, and 5G coverage, facilitating superior digital services and technology adoption. The city also benefits from large government investments in digital infrastructure and the presence of innovation centers like Skolkovo, which incubate numerous ICT startups and attract significant foreign investments and public-private partnerships.
However, the trend of shifting client demand to new regional locations is due to the lack of new capacity in Moscow and St. Petersburg. The infrastructure and energy constraints outside major cities, such as power availability and energy infrastructure, tend to be more robust in large cities, restricting large-scale deployment in less-developed regions of Russia.
Recent years have seen a rapid increase in data center requests and construction predominantly targeting larger urban areas, reflecting both growing digitalization and previously unmet demand concentrated in Moscow and St. Petersburg. As a result, many operators may return to implementing old data center projects that were frozen, and new players, such as developers, may enter the market due to the shifting demand to regional locations.
According to 3data, many operators and new players may enter the data center market, which could potentially lead to a more balanced distribution of data center capacity across Russia. Pavel Bragin, director of the "Calculation, Storage, Networks and Media" product stream at MWS Cloud, believes that these factors can increase the number of data centers, making data center construction more attractive to investors.
Sources:
- Roskomnadzor
- Skolkovo
- 3data
- DatacenterDynamics
The increasing interest in cloud and AI services among Russian companies, as well as the anticipated surge of new data center construction, highlight the significance of data-and-cloud-computing technology in the nation's rapidly evolving digital landscape. To capitalize on this growth, operators and new players may invest in data center construction, potentially leading to a more balanced distribution of data center capacity across Russia.
