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CEE Investment: Why Data Center Projects Are Growing in the Region?

CEE investment in data centers is no longer a narrow infrastructure story. It now sits at the intersection of real estate investment, commercial real estate, capital markets, energy strategy, and digital demand. In 2025, total real estate investment across seven Central and Eastern European countries reached EUR 11.8 billion, up 34% year on year and marking the region’s strongest result in six years. At the same time, Europe’s core data center markets tightened further, with FLAP-D vacancy falling to a record low of 6.3%, which has pushed investors and operators to look more seriously at the wider CEE region for long term growth.

That shift matters because the market is no longer reacting only to short-term demand spikes. Over a decade, the data center industry has moved from a concentrated location strategy toward a broader regional network built around power, fiber, land readiness, and operational efficiency. The next wave of growth is being shaped by AI, cloud, and enterprise users that need space, speed, and resilient infrastructure rather than just presence in a traditional hub.

What is driving CEE investment and CEE investments in digital infrastructure across the CEE region?

The first driver is simple: demand keeps rising. In 2025, 52.74% of EU enterprises used paid cloud computing services, while 84.67% of large enterprises did the same. That matters for investors because more cloud adoption means more data, more critical systems, and more pressure on physical infrastructure. Data centers are becoming an integral part of how organizations manage communication, storage, security, and business operations across sectors.

The second driver is the rise of AI workloads. JLL expects AI could represent half of all data center workloads by 2030, while neocloud signings for AI capacity almost tripled in 2025 across Europe. Just as important, the same report argues that more than half of AI growth is likely to move into Tier 2 and emerging markets because primary locations face higher Powered land costs and grid lead times of up to ten years. That is exactly where investment opportunities in the CEE region become more visible.

The third driver comes from the investment side. CEE-based investors accounted for a record 65% of regional transaction volume in 2025, showing that local capital is playing a more crucial role in acquisitions, asset management, and development. This makes the region look more stable to outside investors as well, because growth is no longer dependent only on Western European flows. In other words, CEE investment is being supported by both demand for digital infrastructure and a maturing regional investment base.

Why does every new Data center project start with the right location?

Every serious Data center project starts with site selection, but today site selection means far more than a pin on a map. It is a due diligence exercise around power availability, network redundancy, environmental conditions, permitting, security, logistics, and future expansion. JLL notes that finding contiguous space of 10 MW or more in Europe has become increasingly difficult, while primary markets can command Powered land premiums of up to 3.1 times over tertiary or regional locations. That makes location a critical investment decision, not just a technical one.

A weak site can slow construction projects before they begin. A strong site does the opposite: it supports planning, simplifies procurement, improves communication with contractors and stakeholders, and creates better conditions for operating at scale later on. When investors talk about long term value in this sector, they are often talking about one thing underneath it all: whether the land, power, and permitting strategy were right from the start.

The role of Powered land in faster deployment

Powered land has moved from a helpful option to a core part of data center strategy. In a market where grid access can take years and pre-leasing is becoming the norm, sites with energy, fiber, zoning, and permit readiness already in place can materially reduce risk. That is why Powered land now carries weight not only in construction planning, but also in investment, management, and operating models.

It also changes the way investors think about success. Instead of treating land as a passive asset, the market increasingly treats it as infrastructure with built-in development value. A site that is ready for power and building development can improve time to market, support better operational efficiency, and create more flexibility for future expansion. That logic is becoming central to CEE investments in data centers.

Data centers in Bulgaria: why the market is gaining ground in Southeast Europe

Data centers in Bulgaria are gaining attention because the country combines a well-developed connectivity infrastructure with a relatively early-stage growth profile. The European Commission says Bulgaria has a well-developed connectivity infrastructure, a roadmap of 60 measures backed by EUR 2.19 billion, and an estimated 10 edge nodes in 2024. On top of that, Bulgaria joined the euro area on January 1, 2026, after receiving EU approval in 2025, which strengthens the country’s long term financial and regulatory positioning for investment.

For a Data center project, that creates a useful mix of conditions: a country with improving digital foundations, a growing role in critical technologies, and a strategic location in Southeast Europe. It is not yet the most mature market in the region, but that is part of the appeal. For investors looking at data centers in Bulgaria, the case is about headroom, infrastructure readiness, and the ability to build in a market that still offers room for creation rather than just competition for scarce space.

Data centers in Romania: strategic growth and connectivity advantages

Data centers in Romania stand out for one reason above all: connectivity. The European Commission says Romania can rely on a well-developed fixed connectivity infrastructure and remains one of the EU leaders in fixed connectivity, including in sparsely populated areas. The country had an estimated 11 edge nodes in 2024, which helps support its role in regional data and technology flows.

Romania is not a perfect story, and that makes it more credible as an investment case. The same report says digitalisation of enterprises still lags behind the EU average, and 5G performance remains weak. But for investors, that does not cancel the opportunity. It reframes from it. Romania offers strong infrastructure foundations, skilled technology talent, and a development profile that still leaves meaningful room for growth. For projects that depend on reliable energy supply, robust network access, and scalable sites, that combination matters.

Data centers in Poland: a mature and scalable market

Data centers in Poland benefit from a different profile. Poland already looks like a more mature and scalable market, with strong fixed internet connectivity, coverage above the EU average, 82 estimated edge nodes, 11 unicorns in 2024, and a Digital Decade roadmap of 55 measures backed by EUR 12.4 billion. That gives the country a broader technology and innovation base than many regional peers.

Poland is also dealing directly with one of the most important issues in the industry: grid access. In January 2026, the Polish cabinet approved draft energy law changes aimed at speeding up grid connections, improving transparency, and reducing speculative capacity requests. Reuters reported that Poland had seen an unrealistic 130 GW of grid connection applications for data centers, even though official forecasts put actual data center demand at 1.2 GW by 2034. That gap explains why due diligence, power planning, and site selection remain so critical in data centers in Poland.

Why are CEE investments attracting global data center operators?

Global operators are paying attention because the wider investment backdrop is improving while the supply picture in traditional hubs remains constrained. CEE commercial real estate has moved from recovery into early expansion, pricing has stabilised, financing has become more accessible again, and investor interest has returned to offices, industrial and logistics assets, and hotels. Poland remained the region’s largest investment market in 2025 with EUR 4.5 billion in volume, while industrial and logistics transactions were a major part of that activity.

That broader capital markets context matters even for data centers. It signals that investors are again willing to underwrite complex projects across the region, including assets that need active management, careful development, and close coordination across sectors. For data center developers, the message is clear: CEE is no longer viewed as a side market. It is increasingly seen as a region where infrastructure, energy, and commercial real estate strategy can come together in one investable story.

Strong demand from cloud, AI, and enterprise sectors

Demand is no longer coming from one corner of the market. Cloud services are spreading deeper into the enterprise base, AI is reshaping capacity requirements, and enterprise users are placing more emphasis on latency, resilience, and operating flexibility. JLL’s view that inference is likely to overtake training by late 2026 is especially important, because inference tends to push demand into a wider network of locations rather than concentrating everything in a handful of mega-hubs.

That creates a more distributed opportunity across the CEE region. Instead of one winner taking all, the market is moving toward a portfolio logic in which different countries can play different roles. Bulgaria can serve as a gateway market, Romania can compete on connectivity and digital infrastructure, and Poland can support larger-scale expansion with a stronger operating base.

Energy access and sustainability in the region

Energy has become the defining constraint. The European Commission says data centers are already responsible for about 415 TWh of yearly global electricity consumption, and projections point to 945 TWh by 2030, driven mainly by energy-intensive accelerated computing for AI. In that environment, power strategy is not a support topic. It is the center of the investment thesis.

That is why sustainability, environmental planning, and responsible infrastructure design now matter to investors as much as price. The question is not only whether a site has power today. It is whether the country, the grid, and the local operating environment can support the future architecture of the project over the long term. That includes renewable integration, quality of transmission systems, regulatory clarity, and the ability to keep operations resilient as demand rises.

Long-term potential for Data center project expansion

The long term case for the CEE region is strongest when the market is viewed as a system rather than a single-country bet. Bulgaria offers improving digital foundations and macroeconomic convergence. Romania brings strong fixed connectivity and meaningful room for enterprise technology growth. Poland combines scale, stronger market maturity, and a more advanced digital ecosystem. Together, they show why CEE investment in data centers is becoming part of a broader regional strategy rather than a series of isolated projects.

How to choose the right Data center project in CEE?

The right Data center project in CEE is rarely the one with the loudest headline. It is usually the one with the best site selection discipline, the clearest diligence process, and the strongest alignment between power, fiber, permitting, construction, contractors, and long term operations. Investors need to evaluate not just the location, but also the surrounding network, local stakeholder environment, regulatory path, environmental constraints, and the quality of the operating model that will ultimately support the asset.

That is also the space where Power Loop is positioned to add value: working closely across site selection, power access, permitting, and development execution so that investors are not simply buying land, but building a resilient foundation for future growth. In a market where demand is rising faster than supply and time matters almost as much as location, that kind of expertise can become a decisive advantage.

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