Data Centers in Prague

Prague – Central Europe's Resilient Hub

Executive Summary

Prague is a strategic colocation market for businesses targeting Central and Eastern Europe. Its prime location, low natural disaster risk, and stable infrastructure provide a reliable foundation for deploying critical IT assets. This market is ideal for companies requiring a resilient European footprint with excellent connectivity to neighboring economic hubs.

Prague: At A Glance

Network & Connectivity Ecosystem

Prague's connectivity is solid, serving as a key traffic exchange point for Central Europe. The city's data centers offer a good mix of regional and international providers.

Carrier Density & Carrier Neutrality: With over 15 carriers present as of September 2025, Prague provides healthy competition and choice. Carrier-neutral facilities are the standard, allowing customers to connect with their preferred network providers.

Direct Cloud On-Ramps: The market has over 1 dedicated cloud on-ramp, enabling direct, private access to 1 cloud region as of September 2025. This includes a local on-ramp for AWS. Access to other major clouds like Microsoft Azure and Google Cloud is available through network provider extensions and partner fabrics from nearby hubs like Frankfurt.

Internet Exchange Points (IXPs): The primary exchange is NIX.CZ, which significantly improves network performance by keeping domestic and regional traffic local. This reduces latency and transit costs for interconnected businesses.

Bare Metal: Bare metal server options are readily available from providers in Prague. Companies like phoenixNAP offer dedicated server solutions for workloads requiring direct hardware access.

Power Analysis

Prague’s power infrastructure is reliable and capable of supporting high-density data center deployments.

Average Cost Of Power: Industrial power costs average €0.20/kWh as of December 2023. This price point allows for predictable operational spending on compute-intensive workloads. The country's power mix includes significant contributions from nuclear and fossil fuels, with a growing share from renewables.

Power Grid Reliability: The power grid serving Prague's main commercial zones is well-engineered and stable. Major data centers are typically supported by redundant power feeds from separate substations, ensuring high levels of uptime.

Market Access, Business & Tax Climate

Prague is a major commercial center with a highly skilled workforce and a business-friendly environment.

Proximity To Key Business Districts: Data centers in Prague are located with easy access to the city's primary business, financial, and technology districts. This proximity serves latency-sensitive applications for local enterprises and multinational corporations with regional headquarters.

Regional Market Reach: From Prague, organizations can effectively serve markets across the Czech Republic, Germany, Poland, Austria, and Slovakia with low latency. Its central location makes it an efficient distribution point for digital services throughout the CEE region.

Tax Advantage For Data Centers: The Czech Republic does not offer specific tax incentives for data centers. This creates a straightforward and predictable fiscal environment where businesses operate under the standard 21% VAT rate without complex eligibility requirements.

Natural Disaster Risk

Prague has a very low natural disaster risk profile, with an INFORM Risk score of 1.9 out of 10 as of September 2025. This geologic and climatic stability is a primary advantage for critical infrastructure hosting, minimizing the threat of environmental disruptions to operations.

The main, though still minor, hazards to consider are:

• River Flood: The most notable risk, though modern flood defenses offer significant protection to commercial areas.
• Drought: A potential long-term environmental concern for the region.
• Earthquake: Seismic risk is considered very low.