TL;DR
- Central and Eastern Europe remain underserved by data centres despite favourable conditions.
- The European Union is investing €20 billion in AI gigafactories, with Poland and the Baltics pushing to secure investment.
- Data centres drive economic growth, create jobs, and reduce latency and improve performance for finance, cloud services, AI, and streaming.
- The region’s digital sovereignty is crucial for the EU’s eastern flank.
Energy and AI Observatory data centre map highlights underserved Eastern Europe
The recent mapping tool published by the International Energy Agency’s Energy and AI Observatory highlights the lack of data centres in Central and Eastern Europe. Despite the region’s favourable conditions, it remains underserved, with most hubs concentrated in Western and Southern Europe. This shortage is a concern, especially with the EU’s plans to invest €20 billion in AI gigafactories. Poland and the Baltics are actively seeking to attract investment and strengthen their digital sovereignty.
The absence of data centres in the region is not just a matter of economic development; it also has implications for the EU’s digital strategy. AI-optimised data centres are crucial for reducing latency and improving performance for various services, including finance, cloud services, AI, and streaming. Furthermore, investments in data centres and AI capacity send positive signals to foreign investors, which is essential for countries like Poland and the Baltics that have been affected by their proximity to Russia.
Gigafactory investments could help to develop Eastern European data centre infrastructure
The European Commission’s decision to invest €20 billion in AI gigafactories is a significant step towards addressing the shortage of data centres in Central and Eastern Europe. However, the Commission’s choice not to disclose the identities of the applicants has raised concerns about transparency and accountability. Poland and the Baltics have jointly applied for an AI gigafactory, signalling both ambition and caution regarding the accessibility of Finland’s LUMI supercomputer via “antennas.”
The development of AI gigafactories is expected to have a significant impact on the region’s economy and digital landscape. These state-of-the-art facilities will be purpose-built to develop, train, and deploy next-generation AI models and applications at hyperscale. By integrating vast computing power, energy-efficient data centres, and AI-driven automation, these facilities will set new benchmarks for AI model training, inference, and deployment.
Conclusion
In conclusion, the shortage of data centres in Central and Eastern Europe is a pressing concern that needs to be addressed. The EU’s investment in AI gigafactories is a positive step, but more needs to be done to ensure that the region’s digital sovereignty is strengthened. The development of AI-optimised data centres will drive economic growth, create jobs, and improve performance for various services. As the region continues to grow and develop, it is essential that investments in data centres and AI capacity are prioritized to ensure that Central and Eastern Europe remains competitive in the digital age.
References
[^1]: Egle Markeviciute (2025-08-22). “Data centres: too many blank spots in Central and Eastern Europe“. Euronews. Retrieved 2025-09-12.
[^2]: AlgorithmWatch (2025-07-24). “Infrastructure or Intrusion? Europe’s Conflicted Data Center Expansion“. AlgorithmWatch. Retrieved 2025-09-12.
