The EU is weighing plans to invest €20 billion in AI gigafactories, with Poland and the Baltic states pushing hard to secure funding and boost regional digital sovereignty.
A new report from the International Energy Agency’s Energy and AI Observatory shows Central and Eastern Europe remain underserved by data centres, despite favourable conditions. The Observatory’s map highlights Europe’s existing and planned hubs, revealing a stark concentration in Western and Southern regions.
Experts stress that AI-optimised data centres, suited for colder climates and abundant water, could transform the east. These hubs create high-value jobs, strengthen local AI ecosystems, and reduce latency for vital services such as finance, streaming, and cloud computing.
Eastern Europe’s leaders argue that investments would signal trust and attract foreign investors, crucial for countries near Russia, where geopolitical tensions have slowed capital flows.
Despite governments’ readiness to welcome foreign direct investment and favourable conditions, private spending remains modest. This makes the European Commission’s upcoming gigafactory decisions critical.
AI gigafactories will be advanced hubs built to train and deploy massive AI models at hyperscale. The facilities will integrate energy-efficient design and automation, setting new global benchmarks.
The Commission, which has not disclosed applicant names, received 76 expressions of interest from 16 EU countries. Poland and the Baltics applied jointly, concerned over accessibility to Finland’s Lumi AI factory.
Talks are now intensifying as Warsaw and Baltic capitals seek partners to strengthen the proposal and position the region as a key AI development centre.
