Tech giant Microsoft buys 1.5 billion crowns worth of Prague real estate

Tech giant Microsoft is already one of the largest foreign employers in Prague, and they may be significantly expanding operations in the Czech capital in the near future. The company has bought approximately 1.5 billion crowns worth of land in Prague's Klíčov neighborhood.

The land is located a few hundred meters from the Letňany metro station, and totals about 67,000 square meters in size. For reference, that's about fifty percent larger than Wenceslas Square.

Microsoft has yet to issue an official statement regarding the purchase, but the details were confirmed through Prague's real estate registry. The company purchased the land from local developer CPI.

The new land could be the next step for a long-rumored Microsoft data center to be built in Prague, but for now, the company is remaining tight-lipped about their latest investment.

"We currently have no further information regarding the purchase of the land," Microsoft's CEE Director of Communications Lenka Čábelová told Seznam Zprávy when asked about the company's real estate transaction.

"We can confirm our continued determination to strengthen the digital transformation of the Czech Republic through Microsoft's cloud services."

Microsoft currently operates about ten data centers in Europe, and recently confirmed the construction of a new one in Poland, part of the company's billion-dollar (23.5-billion crown) investment in the Czech neighbor.

Microsoft currently employs nearly 1,000 people at its development center in Brumlovka, Prague 4, which the company proudly refers to as "the workplace of the future." One of Microsoft's largest corporate branches in Europe, the Prague office employs positions from sales, marketing, HR, and other areas.

The land in Klíčov, however, represents Microsoft's first real estate investment in Prague. The company currently leases the Brumlovka office.

In addition to its proximity to the Letňany metro station, the plot is also immediately adjacent to a large bus depot operated by Prague public transit authority DPP.

CPI, which is owned by Czech billionaire Radovan Vítek, had planned to turn the Klíčov plot into an development containing a hotel, retail establishments, and warehouses. While the land has been prepared for construction, however, those plans were ultimately not realized over the past decade.