We are living in the age of data. The ongoing technological revolution, led by artificial intelligence (AI) and the Internet of Things (IoT), has driven an unprecedented demand for data storage. Countries like the United States and China are investing heavily in this sector, and this trend is only accelerating. Globally, data creation and consumption reached approximately 64.2 zettabytes in 2020, and it is projected to skyrocket to 180 zettabytes by the end of 2025. This growth is fuelled by the increasing complexity of IoT devices, the rise of digital content consumption, and the proliferation of data-intensive applications.
The data storage market is also becoming increasingly profitable. In 2023 the global data storage market was valued at approximately $186.75 billion and is expected to surge to $774 billion by 2032, reflecting a compound annual growth rate (CAGR) of 17.1 per cent. Given these projections, it is imperative for countries to invest in this sector now to maximize returns and establish a competitive advantage.
However, Hungary is notably absent from the top ten countries leading in data storage infrastructure. Nations such as Portugal, the United Kingdom, and the Netherlands have taken significant strides in this industry, while Hungary lags behind with only 23 data centres. In stark contrast, Romania—despite having a smaller economy—has 61 data centres. This disparity is largely due to the Romanian government’s strategic decision to invest millions of euros through its national investment bank to support the construction of large-scale data centres.
This should serve as a wake-up call for Hungarian policymakers. A new economic race is unfolding in the data sector, and emerging economies such as Malaysia and Rwanda are aggressively positioning themselves as global data hubs. Hungary has the opportunity to establish itself as a key player in this market, unlocking tens of thousands of jobs, attracting substantial foreign direct investment (FDI), and strengthening its geopolitical significance as a strategic partner for other nations.
‘Expanding Hungary’s energy production will be critical to supporting large-scale data centre operations’
Data centres are highly energy-intensive. Fortunately, Hungary possesses a strong energy sector, with the majority of its power coming from nuclear energy and increasing contributions from renewables and fossil fuels. The country already has the infrastructure needed to compete with—and potentially surpass—Romania in this industry. However, this will only happen if policymakers recognize the significance of this sector and take decisive action. Expanding Hungary’s energy production will be critical to supporting large-scale data centre operations.
Romania’s approach to developing its data industry mirrors South Korea’s strategy in the late 20th century: direct government funding of small, home-grown technology companies. Instead of relying on multinational giants like AWS or Oracle, the Romanian government provided grants to small entrepreneurs, enabling the country to become the leading data hub in Eastern Europe. These companies, now established, serve Romania’s interests first and have successfully positioned the country as a regional leader.
Hungary should adopt a similar approach by creating a government-backed investment fund dedicated to entrepreneurs and start-ups in the data sector. This fund would support the construction of new data centres and incentivize local businesses to enter the market. Additionally, Hungarian companies could sign contracts with American and Chinese firms to store offshore data, generating revenue and strengthening Hungary’s economy.
The benefits of investing in data infrastructure are undeniable. By following a proactive strategy, Hungary can offer tax incentives to companies that build data centres, partner with international cloud providers to establish local facilities, expand and modernize digital infrastructure to attract global tech firms, and finally develop a skilled workforce specializing in data management and cybersecurity.
‘With state-backed incentives and private sector collaboration, Hungary could create an ecosystem where robotics and AI thrive’
Investing in data infrastructure can also serve as a catalyst for Hungary’s robotics industry. As AI-driven automation and robotics increasingly rely on massive data processing and real-time cloud computing, a robust data centre network would provide the necessary infrastructure for Hungarian companies to develop and deploy advanced robotics solutions. By fostering a high-performance computing environment, Hungary could attract global robotics firms, support local start-ups, and integrate AI-powered automation into industries such as manufacturing, logistics, and healthcare. Additionally, the synergy between data centres, AI, and robotics could lead to the development of smart factories and autonomous systems, positioning Hungary as a regional leader in industry. With state-backed incentives and private sector collaboration, Hungary could create an ecosystem where robotics and AI thrive, further boosting economic growth and technological advancement.
Beyond economic gains, this is also a national security issue. Data sovereignty is increasingly critical in global politics, and controlling a substantial portion of Europe’s data infrastructure would give Hungary greater leverage in international affairs. If policymakers take this sector seriously, Hungary can emerge as a leader in data storage, making it indispensable to Europe’s digital economy.
Thus, I strongly urge Hungarian policymakers to prioritize investments in cloud technology, digital infrastructure, and entrepreneurship within this sector. The window of opportunity is open now—Hungary must seize it before others do.
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