The establishment in Poland of another cloud region of a major global Provider and the anticipated increase in investment in the area of data centers are just some of the evidence that technology companies are choosing our country as a favorable place for investment and development.
What makes Poland an attractive investment destination?
According to the latest “2023 Global Services Location Index” published by Kearney in July this year, talent regeneration is the biggest determinant of investment advantage. The level of this factor is influenced by the education system, the quality of the labor market, immigration policy, government support programs or digital infrastructure, among others. According to the report’s criteria, Poland ranked a high 2nd in Europe and 13th in the world in terms of attracting investment in modern business services. In addition, our country was listed as one of the three most conducive to technology investment. Poland was recognized for its financial attractiveness and the high digital competence of its workforce, backed by more than 400 institutions of higher education supplying some 400,000 IT specialists to the market.
Poland is also a leader in innovation and R&D, as evidenced by the ever-growing number of start-ups, incubators, and with them venture funds, injecting funding into more projects. Polish start-ups specialize in: Artificial Intelligence (AI), Machine Learning, Fintech, Internet of Things (IoT), Industry 4.0 development, Big Data . In the first quarter of 2023 alone, capital worth a total of PLN 446 million was raised by 127 companies (in all of 2022 it was PLN 3.6 billion).
The cost of running the investment is not insignificant. Despite predictions that the cost of IT projects, including colocation, will also rise due to inflation and energy price increases, Poland is still an attractive price area compared to Western Europe. This applies to energy, land, real estate as well as labor costs. Naturally, costs are most often juxtaposed with security and economic stability, which have become particularly important in recent times. Despite the political and economic difficulties, the increase in projected GDP growth (+2.7% in 2024) and one of the lowest unemployment rates (2.8% 08.2023) gives grounds for optimism.
In addition to a growing economy, government and regional investment support programs (including R&D, green energy), tax breaks (related to R&D projects, job creation, expansion into new markets) and the benefits of operating in economic zones and regions are important factors in establishing new projects and investments in Poland .
Renewable energy is another important and growing area for investors, with record-breaking investments in recent years. In 2022 alone, 80% of the EUR 990 million invested by the European Bank for Reconstruction and Development (EBRD) will support green and closed-cycle economy projects.
For many industries, including IT, Poland’s central location, which is also strategic in the geopolitical sense, also plays an important role. It influences the investment decisions of many companies, the development of infrastructure and, consequently, the growing market of prospective clients and the development of new projects close to customers.
[1]“Data center market in Poland 2023” PMR [1] www.paih.gov.pl [1] PFR Ventures 04.2023 [1] Overview of European economies, PRF 10.2023 [1] Investment in Poland, KPMG 06.2023
