Central and Eastern Europe’s technology sector has been expanding at an impressive pace, drawing global attention for its talent and fast-growing digital companies. Yet, as innovation accelerates, the region’s physical and digital backbone — the data infrastructure that sustains it — still lags behind. Analysts warn that without decisive investment, the region risks slowing its own momentum in the global technology race.
Across Europe, data centre development remains heavily concentrated in the West. Cities like Frankfurt, Amsterdam and Dublin continue to dominate, while many parts of Central and Eastern Europe are described as “blank spots” on the map. This imbalance limits access to the advanced computing capacity that modern industries require — from artificial intelligence to cloud platforms.
The challenge is not one of potential. The region offers favourable conditions such as cooler climates, affordable land, and an increasingly educated workforce. But slow permitting procedures, inconsistent regulations, and fragile power networks have delayed projects that could position the area as a serious technology hub.
Recent analysis from European research institutions highlights that a modernised digital infrastructure could significantly boost the region’s economy. Expanding data centre capacity and energy-efficient cloud services could unlock billions in additional annual output and create high-value jobs in cities like Warsaw, Prague, and Bucharest.
At the same time, Central and Eastern European tech firms are achieving record valuations and expanding internationally. Start-ups and listed companies in Poland, Estonia, and Czechia have been growing up to three times faster than their Western counterparts, buoyed by digital adoption and the nearshoring of tech services. But their progress exposes a gap: the ability to host, process, and secure large-scale data locally remains limited.
Governments across the region are beginning to respond. Poland is promoting green data hubs, Romania is experimenting with mixed-use “digital parks,” and the Baltics are launching new cloud cooperation initiatives. These are early steps, but experts say regional coordination will be critical to sustain progress.
The issue goes beyond technology. As Europe’s economic future increasingly depends on secure and independent digital systems, Central and Eastern Europe’s readiness will shape its competitiveness within the wider EU. Without faster upgrades in infrastructure and energy capacity, local innovators may continue to rely on Western Europe for data processing and cloud storage — a dependence that limits both control and opportunity.
For now, the region stands at a crossroads. Its entrepreneurs and engineers are proving their ability to compete globally; the question is whether the physical foundations beneath them can keep up. The race for digital sovereignty in Europe will be won not only by ideas, but by the places that can build — and power — them.