Bulgaria at the Forefront of Balkans’ AI Revolution

The Balkans are increasingly becoming important players in the global competition for artificial intelligence and data center infrastructure, with Bulgaria taking a lead role.

A significant transformation is happening in the region. For instance, Croatia recently announced Project Pantheon, an AI data center campus in Zagreb, which is set to be the largest facility in the EU upon completion. This project also represents the biggest private U.S. investment in Europe. Romania, on the other hand, is investing in an 800-megawatt AI-focused data center dubbed the “Black Sea AI Gigafactory.” With so many such projects emerging, the European data center and AI market appear to be expanding rapidly, but Bulgaria’s efforts are particularly noteworthy—not because it’s the largest player but due to its strategic significance.

Sofia’s Evolving Tech Scene

In March 2025, Bulgaria was chosen to host one of only six new EU AI factories by the European High Performance Computing Joint Venture. This initiative aims to bolster Europe’s computing capabilities in response to U.S.-China AI competition. The Bulgarian project, known as BRAIN++, will be based in Sofia Tech Park and will feature the Discoverer++ supercomputer, which is designed for advanced AI tasks. The plan includes creating a robust AI hub for government, academic institutions, and businesses. According to the Institute for Computer Science, Artificial Intelligence, and Technology (INSAIT), which is co-leading the project, BRAIN++ is comparable in computing power to global leaders like China’s DeepSeek.

Bulgaria’s claim to leadership in AI is underpinned by a solid foundation. The nation has developed a vibrant ICT sector, housing over 80,000 tech professionals and more than 10,000 ICT companies. Sofia has become a prime destination for outsourcing in Europe, boasting a corporate tax rate of just 10%—the lowest in the EU—which attracts international firms, including from the U.S. Although energy prices are rising, they still remain below the European average. This factor is crucial, given that AI data centers have significant energy demands.

Then there’s INSAIT, a prestigious AI research institute drawing researchers back from prominent universities in America and Europe. INSAIT transforms BRAIN++ from merely a government-funded initiative into a true innovation hub. Its aspirations include developing a large language model for the Bulgarian language, exploring robotic AI, and implementing an Earth observation system. As INSAIT’s scientific director Martin Vechev puts it, the aim is for Bulgaria to emerge as a leading figure in European AI.

Challenges Ahead

It’s not all smooth sailing, however. For years, many talented Bulgarians have relocated to countries like Germany, the Netherlands, and the UK, seeking opportunities not prevalent at home. Additionally, U.S. AI chip export restrictions affecting Bulgaria and 17 other EU nations complicate procurement processes, adding a layer of geopolitical concern.

Yet, these obstacles don’t overshadow the remarkable changes taking place. The developments in Bulgaria and the Balkans indicate a necessary shift in Europe’s digital landscape. Traditional data center markets, like those in Frankfurt, London, Amsterdam, Paris, and Dublin, are becoming saturated, facing challenges related to power supply, land availability, and slowdowns in growth. As a result, capital is moving to areas with better resources and government eagerness for investment to overcome bureaucratic stagnation.

Bulgaria: A Promising Investment Opportunity

Bulgaria stands to gain significantly from the growth of AI and data center investments. The nation aims to align its BRAIN++ investments with initiatives to retain talent and foster economic growth. The objective is to prevent a widening digital skills gap between Sofia’s tech sector and the rest of the country, thus ensuring inclusive access to technology and shared prosperity.

For the people of Bulgaria, this moment is pivotal. For too long, the nation has had potential that remained largely unfulfilled. While nothing is certain, the advent of BRAIN++, INSAIT, and other advancements represents a serious commitment to the country’s technological future. There’s a clear call for the U.S. to bolster public-private partnerships, a process that appears to be gaining momentum.