Data Centres: Too Many Blank Spots in Central and Eastern Europe
As the European Union prepares to allocate €20 billion toward building AI gigafactories, a glaring issue has resurfaced: Central and Eastern Europe remain underserved when it comes to large-scale data centres. Despite favourable conditions—colder climates, available water resources, and governments eager to attract investment—the region still lags behind Western Europe in hosting the infrastructure necessary for powering the next generation of artificial intelligence (AI).
A recent report by the International Energy Agency’s (IEA) Energy and AI Observatory highlights this imbalance, showing just how unevenly Europe’s data centre network is distributed. The findings raise pressing questions about the continent’s digital sovereignty, competitiveness, and readiness to lead in AI development.
Mapping Europe’s Data Centre Divide
The IEA’s newly launched interactive map provides a striking visual of where Europe’s computing power is currently concentrated. The map categorises hubs as:
- Operating hubs with less than 500 megawatt (MW) capacity (blue)
- Operating hubs with more than 500 MW capacity (green)
- Planned hubs with more than 500 MW capacity
While Western and Southern Europe are dotted with high-capacity facilities, Central and Eastern Europe show far fewer. Apart from small operating hubs and a planned large-scale centre in Poland, the map reveals blank spots across the Baltics, the Balkans, and much of Central Europe.
This imbalance is not merely a cartographic curiosity; it highlights a growing problem for the EU’s digital strategy. If advanced AI compute facilities continue to cluster in only a few countries, it could deepen the economic and technological divide within the bloc.
Why Data Centres Matter for AI
Data centres are the beating heart of the digital economy, but when it comes to AI and high-performance computing (HPC), specialised data centres become even more critical. These facilities are designed to handle vast computing loads, enable faster training of AI models, and provide reliable infrastructure for scaling applications.
Location matters. AI-optimized data centres thrive in cooler climates with abundant water resources, which help reduce cooling costs and energy consumption. By that metric, countries like Poland, Lithuania, Estonia, and Latvia are well-positioned to host them.
Beyond infrastructure, however, the placement of AI data centres has strategic and symbolic significance. For countries on the EU’s eastern flank, investment would:
- Boost economic growth through the creation of high-value jobs in technology and engineering.
- Foster local AI ecosystems buy attracting startups, researchers, and tech companies.
- Improve digital performance by reducing latency for finance, cloud services, AI, and streaming providers.
- Send a positive signal to foreign investors, countering years of cautious capital inflows tied to geopolitical risks, especially proximity to Russia.
In short, data centres are not just warehouses of servers—they are strategic assets in the race for technological sovereignty.
The Investment Gap
Despite favourable conditions and clear benefits, private investment in Central and Eastern European data centres remains modest. This gap exists even though governments in the region have shown strong willingness to welcome foreign direct investment (FDI) and offer comparatively flexible administrative frameworks.
One reason for this hesitation is historical: international investors have often preferred “safe bets” in established Western European markets. Another is geopolitical, as some countries on the EU’s eastern edge are perceived as riskier due to tensions with Russia. But as the EU seeks to strengthen its resilience and autonomy in digital technologies, ignoring this region is becoming increasingly untenable.
Enter the AI Gigafactories
The EU’s plan to build AI gigafactories may prove to be the game-changer. These next-generation facilities will go far beyond traditional data centres. They are envisioned as state-of-the-art hubs purpose-built for AI model training, inference, and deployment at hyperscale—handling models with hundreds of trillions of parameters.
Each gigafactory will integrate:
- Massive compute power for training advanced AI models.
- Energy-efficient design to reduce environmental impact.
- AI-driven automation to optimise operations.
By setting new benchmarks for AI infrastructure, these gigafactories will form the backbone of Europe’s AI ambitions, enabling the bloc to compete with the United States and China.
Poland and the Baltics Make Their Case
The European Commission confirmed in June that it had received 76 expressions of interest from 16 EU countries to host gigafactories, but declined to disclose the applicants’ identities. However, it is known that Poland and the Baltic states applied jointly, signalling both ambition and strategic caution.
Poland has emerged as a natural candidate, with its larger market, strong industrial base, and established digital infrastructure. The Baltics, meanwhile, have expressed concern that relying solely on Finland’s Lumi AI factory and its “antenna” links may not be sufficient to meet their growing needs. By partnering with Poland, they aim to strengthen their position and ensure direct access to cutting-edge AI infrastructure.
Recently, these countries have also begun rallying partners—from private investors to academic institutions—interested in helping to build not just a gigafactory, but an entire regional AI ecosystem.
What’s at Stake
The European Commission’s upcoming decision on where to locate the four to five AI gigafactories will be pivotal. Choosing Central or Eastern Europe would signal trust in the region and a commitment to bridging the EU’s digital divide. Conversely, bypassing the region risks reinforcing existing imbalances and weakening the bloc’s collective digital sovereignty.
The decision also carries geopolitical weight. For countries like Poland, Lithuania, Latvia, and Estonia, hosting a gigafactory would represent more than just an economic boost. It would symbolise their full integration into the EU’s technological future and counter narratives of marginalisation.
Looking Forward
As the European Commission weighs where to place its AI gigafactories, the spotlight is firmly on Central and Eastern Europe. With favourable conditions, growing digital ecosystems, and governments eager to welcome investment, the region is well-positioned to become a cornerstone of Europe’s AI future.
If the EU takes bold steps to invest beyond its traditional hubs in Western Europe, it could not only close the infrastructure gap but also send a powerful signal about inclusivity and strategic resilience. For Poland and the Baltics, securing an AI gigafactory would mark a transformative moment—cementing their role as active players in shaping the next era of European digital sovereignty.
Conclusion
The debate over Europe’s AI gigafactories has exposed the blank spots on the map of Europe’s data centre infrastructure. Central and Eastern Europe, long overlooked despite favourable conditions, now stand at a crossroads. With the EU preparing to invest €20 billion, the region has a rare chance to secure its place in the continent’s digital future.
For Poland and the Baltics, the push to host an AI gigafactory is not just about technology—it’s about sovereignty, growth, and resilience. The question now is whether Brussels will recognise the strategic importance of filling in Europe’s digital blank spots, or allow them to remain gaps in the continent’s AI ambitions.
Meta Description:
Central and Eastern Europe remain underserved by data centres despite ideal conditions. With €20B in EU funding for AI gigafactories, Poland and the Baltics push to secure investment and boost digital sovereignty.
Data Centres: Too Many Blank Spots in Central and Eastern Europe
As the European Union prepares to allocate €20 billion toward building AI gigafactories, a glaring issue has resurfaced: Central and Eastern Europe remain underserved when it comes to large-scale data centres. Despite favourable conditions—colder climates, available water resources, and governments eager to attract investment—the region still lags behind Western Europe in hosting the infrastructure necessary for powering the next generation of artificial intelligence (AI).
A recent report by the International Energy Agency’s (IEA) Energy and AI Observatory highlights this imbalance, showing just how unevenly Europe’s data centre network is distributed. The findings raise pressing questions about the continent’s digital sovereignty, competitiveness, and readiness to lead in AI development.
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Mapping Europe’s Data Centre Divide
The IEA’s newly launched interactive map provides a striking visual of where Europe’s computing power is currently concentrated. The map categorises hubs as:
- Operating hubs with less than 500 megawatt (MW) capacity (blue)
- Operating hubs with more than 500 MW capacity (green)
- Planned hubs with more than 500 MW capacity
While Western and Southern Europe are dotted with high-capacity facilities, Central and Eastern Europe show far fewer. Apart from small operating hubs and a planned large-scale centre in Poland, the map reveals blank spots across the Baltics, the Balkans, and much of Central Europe.
This imbalance is not merely a cartographic curiosity; it highlights a growing problem for the EU’s digital strategy. If advanced AI compute facilities continue to cluster in only a few countries, it could deepen the economic and technological divide within the bloc.
Why Data Centres Matter for AI
Data centres are the beating heart of the digital economy, but when it comes to AI and high-performance computing (HPC), specialised data centres become even more critical. These facilities are designed to handle vast computing loads, enable faster training of AI models, and provide reliable infrastructure for scaling applications.
Location matters. AI-optimized data centres thrive in cooler climates with abundant water resources, which help reduce cooling costs and energy consumption. By that metric, countries like Poland, Lithuania, Estonia, and Latvia are well-positioned to host them.
Beyond infrastructure, however, the placement of AI data centres has strategic and symbolic significance. For countries on the EU’s eastern flank, investment would:
- Boost economic growth through the creation of high-value jobs in technology and engineering.
- Foster local AI ecosystems buy attracting startups, researchers, and tech companies.
- Improve digital performance by reducing latency for finance, cloud services, AI, and streaming providers.
- Send a positive signal to foreign investors, countering years of cautious capital inflows tied to geopolitical risks, especially proximity to Russia.
In short, data centres are not just warehouses of servers—they are strategic assets in the race for technological sovereignty.
The Investment Gap
Despite favourable conditions and clear benefits, private investment in Central and Eastern European data centres remains modest. This gap exists even though governments in the region have shown strong willingness to welcome foreign direct investment (FDI) and offer comparatively flexible administrative frameworks.
One reason for this hesitation is historical: international investors have often preferred “safe bets” in established Western European markets. Another is geopolitical, as some countries on the EU’s eastern edge are perceived as riskier due to tensions with Russia. But as the EU seeks to strengthen its resilience and autonomy in digital technologies, ignoring this region is becoming increasingly untenable.
Enter the AI Gigafactories
The EU’s plan to build AI gigafactories may prove to be the game-changer. These next-generation facilities will go far beyond traditional data centres. They are envisioned as state-of-the-art hubs purpose-built for AI model training, inference, and deployment at hyperscale—handling models with hundreds of trillions of parameters.
Each gigafactory will integrate:
- Massive compute power for training advanced AI models.
- Energy-efficient design to reduce environmental impact.
- AI-driven automation to optimise operations.
By setting new benchmarks for AI infrastructure, these gigafactories will form the backbone of Europe’s AI ambitions, enabling the bloc to compete with the United States and China.
Poland and the Baltics Make Their Case
The European Commission confirmed in June that it had received 76 expressions of interest from 16 EU countries to host gigafactories, but declined to disclose the applicants’ identities. However, it is known that Poland and the Baltic states applied jointly, signalling both ambition and strategic caution.
Poland has emerged as a natural candidate, with its larger market, strong industrial base, and established digital infrastructure. The Baltics, meanwhile, have expressed concern that relying solely on Finland’s Lumi AI factory and its “antenna” links may not be sufficient to meet their growing needs. By partnering with Poland, they aim to strengthen their position and ensure direct access to cutting-edge AI infrastructure.
Recently, these countries have also begun rallying partners—from private investors to academic institutions—interested in helping to build not just a gigafactory, but an entire regional AI ecosystem.
What’s at Stake
The European Commission’s upcoming decision on where to locate the four to five AI gigafactories will be pivotal. Choosing Central or Eastern Europe would signal trust in the region and a commitment to bridging the EU’s digital divide. Conversely, bypassing the region risks reinforcing existing imbalances and weakening the bloc’s collective digital sovereignty.
The decision also carries geopolitical weight. For countries like Poland, Lithuania, Latvia, and Estonia, hosting a gigafactory would represent more than just an economic boost. It would symbolise their full integration into the EU’s technological future and counter narratives of marginalisation.
Looking Forward
As the European Commission weighs where to place its AI gigafactories, the spotlight is firmly on Central and Eastern Europe. With favourable conditions, growing digital ecosystems, and governments eager to welcome investment, the region is well-positioned to become a cornerstone of Europe’s AI future.
If the EU takes bold steps to invest beyond its traditional hubs in Western Europe, it could not only close the infrastructure gap but also send a powerful signal about inclusivity and strategic resilience. For Poland and the Baltics, securing an AI gigafactory would mark a transformative moment—cementing their role as active players in shaping the next era of European digital sovereignty.
Conclusion
The debate over Europe’s AI gigafactories has exposed the blank spots on the map of Europe’s data centre infrastructure. Central and Eastern Europe, long overlooked despite favourable conditions, now stand at a crossroads. With the EU preparing to invest €20 billion, the region has a rare chance to secure its place in the continent’s digital future.
For Poland and the Baltics, the push to host an AI gigafactory is not just about technology—it’s about sovereignty, growth, and resilience. The question now is whether Brussels will recognise the strategic importance of filling in Europe’s digital blank spots, or allow them to remain gaps in the continent’s AI ambitions.
Meta Description:
Central and Eastern Europe remain underserved by data centres despite ideal conditions. With €20B in EU funding for AI gigafactories, Poland and the Baltics push to secure investment and boost digital sovereignty.
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