Privileged location in the Data Center market

It's great news for telecom operators that from the beginning of next year LIM Data Center will offer them state-of-the-art space adapted to global quality standards. LIM Data Center is bursting at the seams, with customers lining up to place their equipment there, which is of strategic importance for the Polish telecommunications market.

The pandemic is fueling the growth of the Data Center market in Poland, with potential customers becoming more open to cloud solutions and sensitive to issues such as cyber security and IT continuity, prompting them to seek new locations for their servers. Companies that offer such desirable services, including telecom operators, are announcing major expansion projects to expand their Data Centers. However, location is key in this market, which is why most data centers operate in and around Warsaw. However, some locations in the Polish capital are particularly unique.

Paraphrasing a well-known saying, it can be said that all fiber-optic networks in Poland lead to the Warsaw Marriott Hotel, or more precisely to the LIM Data Center. And indeed, this is largely true.

"Indeed, our Data Center is a hub that concentrates about 12,000 fiber pairs of Polish national, local and international operators. It is a gateway for our customers to exchange traffic and access the transmission networks of all major national and international operators, which saves your valuable time and allows you to set up connection points in 1 to 2 days and keep construction costs low." - says Robert Ogiejm-Oheim, Key Telecommunications Advisor to LIM Management.

LIM Data Center cannot complain about a lack of customers. LIM offers space on levels -2, +3 and +42, as well as the availability to install broadcasting systems on the highest floor of the building (41-meter antenna mast), which provides favorable conditions for propagation of radio waves.

Currently, the LIM Data Center is operating at almost full capacity, so the Board of Directors has decided to expand it.

"The final decision was made earlier this year, although the investment was planned much earlier. However, the pandemic fueled concerns about the contractors' capabilities. Hence, the plans were slightly modified. We have now secured all the necessary permits. We have selected a contractor, the Polish company Sanin, and construction work has already begun," says Robert Ogiejm-Oheim.

The new LIM Center data center space will be available on level -1. The investment project will be implemented in two phases. The facility, known as LIM DC2 with 90 racks, is scheduled to open by January 30, 2022, and LIM DC3, with an additional 90 racks, will begin operations in the middle of next year. "This is an ambitious plan, given the complexity of the work required in the existing building, but together with our Contractor, we can ensure that the deadline will be met," says Robert Ogiejm-Oheim.

Interestingly, LIM DC2 and LIM DC3 will be adjacent to a data center operated by Equinix (the former Plix), also located on level -1. Does this mean that LIM will compete with a major international player?

"That is not our intention. Our customer base is much different than that reached by Equinix. We offer relatively simple space rental services (from renting 1U of telecom rack space, to renting racks and dedicated colocation segments) to our customers, who are almost exclusively telecom operators. Of course, we are able to prepare tailor-made solutions to meet the needs of customers with more specific requirements. Equinix, on the other hand, serves large and global players, such as those in the e-commerce or IT markets, and offers more advanced technological services. We can say that we live in a kind of symbiotic relationship," says Robert Ogiejm-Oheim.

It's no secret that after entering the Polish market and acquiring the Marriot Data Center from Telecity, which had previously acquired Plix, Equinix significantly raised the prices of its services, which was particularly painful for smaller local operators. Many of them decided to move to the neighboring LIM Data Center.

"We are proud of our market experience spanning more than 30 years. We know what our customers need. We are flexible and can respond quickly when they approach us with a new order. We keep all paperwork to a minimum. We are committed to addressing market challenges quickly and responding to every inquiry without unnecessarily prolonging decision-making processes," assures Robert Ogiejm-Oheim.

In deciding to expand the Data Center, LIM's management has set an ambitious task for the managers responsible for its operation. It expects 50% of LIM DC2 space to be leased by February next year, and the entire facility to reach maximum capacity by June, when construction work will begin on LIM DC3

Robert Ogiejm-Oheim is confident that this goal will be achieved. It is also common knowledge that negotiations with potential customers are already underway at the investment stage. In recent months, foreign operators have also shown great interest in using Data Center colocation space.

"We have recently been contacted by major operators from China and Hong Kong - China Mobile, China Telecom, China Unicom or Citric Telecom. We are now getting a lot of inquiries from Poland's eastern neighbors. The pandemic has also increased the demand for telecommunications services and the needs of our local operators are growing," says Robert Ogiejm-Oheim.

However, the more one has, the more one wants. For LIM, which manages Marriot's office space, Data Center operations are just one of the various pillars of the business. However, the pandemic has dealt a blow to the rental of office and conference space, while Data Center services have gained in importance. So they are becoming an increasingly important part of the company's business. Therefore, stay tuned for information on future projects in this market following the addition of LIM DC2 and LIM DC3 to the data center.

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