Worrying headlines concerning Russia’s invasion of Ukraine obscure an improving economic situation for the region. Faced with potential aggression from Moscow, many states are taking the initiative to make their markets both more resilient and attractive for investment.
March 31, 2025 –
Christian Roy
– 
Articles and Commentary
Construction of high-rise apartment buildings in the Wilanów district of Warsaw. Photo: Shutterstock
In the face of heightened geopolitical tensions and consequent economic uncertainty, Central and Eastern Europe (CEE) stands at a pivotal moment. Despite the ongoing conflict in Ukraine and shifting global dynamics following the US presidential election, 2025 is shaping up to be a transformative year for infrastructure investment across the region. A recent CEE Outlook Report published by Amber Infrastructure confirms this assessment, highlighting both the challenges and exceptional opportunities that define the current landscape.
A decade of resilience and growth
The CEE region has consistently proven itself as the growth engine of the European Union over the past decade. With GDP growth regularly outpacing Western European markets and foreign direct investment flowing at unprecedented rates, the region’s resilience in the face of successive crises – from the pandemic to war in Ukraine – has been remarkable. According to the CEE Outlook Report, the share of funding originating from outside Europe rose from nine per cent in 2022 to 21 per cent last year, indicating growing international recognition of the region’s potential.
This resilience is not accidental. It stems from a unique convergence of factors that make CEE particularly attractive to infrastructure investors: EU membership providing regulatory stability, significant infrastructure development needs, and risk-adjusted returns that frequently outperform Western European alternatives.
The challenges facing the region are real. Proximity to the war in Ukraine inherently creates uncertainty, political polarization is increasing in some countries, and an aging population presents long-term demographic concerns. Some governments also have limited experience managing large-scale infrastructure projects, which can lead to procurement delays and implementation challenges.
Yet these challenges are precisely what is driving renewed momentum to address core infrastructure needs and achieve greater resilience. The confluence of geopolitical pressure and economic opportunity has created what might be a once-in-a-generation investment landscape. As the increased polarization between Russia and the EU has intensified, there has been a remarkable political and commercial will to establish infrastructure resilience, from energy to transport and digitalization.
Transport: building resilience through connectivity
Take the transport sector, where supply chain disruption has accelerated modernization efforts. Polish-Ukrainian rail transport has seen remarkable growth – a 28 per cent increase in cargo volumes in early 2024 compared to 2023. Major projects like Poland’s Central Communication Port represent the scale of ambition, integrating air, rail and road connectivity with an investment of approximately 31 billion euros by 2032.
The expansion of the Trans-European Transport Network (TEN-T) corridors across CEE is creating significant investment opportunities in both new infrastructure and the modernization of existing assets. These projects benefit from priority status for EU funding and regulatory support, enhancing their appeal to international investors. The Connecting Europe Facility, together with numerous national investment programmes, has positioned transport infrastructure as a government priority across the region, with Public-Private Partnership models forming a key method of driving investment.
This focus on north-south connectivity is critical for regional integration. Projects like Rail Baltica, supported by both EU funding and national investment programmes, are key to bridging the infrastructure gap while also create ancillary opportunities for private investors. Geopolitical circumstances have catalysed the region, spurring growth in cross-border infrastructure that would have taken decades to develop under normal conditions.
Energy transformation: security meets sustainability
In energy, the region is experiencing an unprecedented transformation. The EU’s ambitious target of 42.5 per cent renewable energy consumption is driving significant investment in solar and wind capacity. CEE is leading relative growth in this sector. For example, Poland increased its solar capacity by 37 per cent in the first half of 2024, while Hungary saw a 49 per cent increase.
The war in Ukraine has accelerated the imperative for energy independence. This has led to remarkable developments such as the Polish power-grid operator PSE outlining plans to invest approximately 15.2 billion euros by 2034. Such investments will lead to some of the largest renewable infrastructure opportunities in Europe, with established regulatory frameworks supporting private investment and incentives for advancing the renewable energy transition.
Private sector participation through Corporate Power Purchase Agreements (PPAs) is creating stable investment environment even as government policies evolve. Companies like Enery, which owns a portfolio of 490MW of operating generation assets and a significant development portfolio of ~8GW+ across CEE, have demonstrated the viability of this model. Their use of physical and virtual PPAs has provided stability in an environment where governments are commonly reviewing energy sector subsidies and incentives.
The CEE digital revolution
Perhaps what is most exciting is the digital infrastructure boom taking place across the entire CEE region. While the Baltics have emerged as prominent leaders with their estimated 360 per cent growth in the Deep Tech scene over the last five years, a digital transformation is happening throughout Central and Eastern Europe. Cities like Warsaw, Prague and Bucharest are all establishing themselves as key tech hubs.
This region-wide digital revolution is creating diverse investment opportunities in specialized digital infrastructure. From network modernization through to 5G rollouts and fibre infrastructure, as well as the integration of digital capabilities with traditional transport corridors, the transformation is comprehensive. The Via Baltica 5G Corridor exemplifies this trend, where transport infrastructure modernization is being combined with advanced telecommunications deployment, creating multiple entry points for investors across sectors.
Innovation hubs are developing across the region, with notable projects like Greenergy Data Centers in Tallinn, which has established one of the most energy-efficient data centres in Northern Europe. Operating on 100 per cent renewable energy, its modular design enables scalability while maintaining infrastructure protection through AI-powered monitoring and efficiency systems.
The investment case for CEE infrastructure
What makes 2025 particularly compelling for infrastructure investors is the powerful combination of institutional support, diverse market entry points, and strategic importance. The Three Seas Initiative Investment Fund (3SIIF) exemplifies this opportunity, having already committed 850 million euros to projects across energy, transport and digital infrastructure.
For international investors, CEE offers a unique proposition: emerging market growth potential with EU stability. The varying stages of market liberalization across the region create multiple entry points for different investment strategies, from stable, regulated returns in more developed markets to higher-growth opportunities in rapidly evolving ones. This diversity spans from the digitally advanced Baltic states to manufacturing-focused Central Europe and the strategically positioned Balkans, with their access to key maritime routes.
The convergence of private sector participation and the region’s growing strategic importance creates a rare window of opportunity. Infrastructure investment here transcends financial returns. – it is about participating in the transformation of a region increasingly central to Europe’s economic future and security architecture. CEE offers an unrivalled proposition in projects backed by secure frameworks, enhanced growth potential, and assets critical to future-proofing EU economic security.
The region is expected to see a rapid uptick in economic growth and a significant increase in infrastructure investment volumes. The CEE market has already cemented itself as one to watch among global competitors. As the region enters its next phase of infrastructure development, opportunity thrives.
Christian Roy is Head of Central and Eastern Europe at Amber Infrastructure.
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Baltics, Central and Eastern Europe, digitalisation, economy, infrastructure, investment, resilience