Serbia and the Global AI Race: Why Forward-Thinking Businesses Are Moving Early

According to the 2025 Government AI Readiness Index, published by Oxford Insights, Serbia ranks 39th out of 195 economies globally. This places Serbia firmly within the top 20% of the world’s most AI-ready countries, ahead of many European Union member states.

What makes this ranking particularly notable is Serbia’s rapid improvement. In the previous year’s report, Serbia ranked 57th. This significant upward movement reflects sustained government investment, policy alignment, and infrastructure development aimed at artificial intelligence, digital transformation, and advanced computing.

Importantly, Serbia now sits in the same global category as technologically advanced nations such as the United Kingdom, Germany, France, Singapore, Japan, South Korea, China, and the United Arab Emirates—despite not being an EU member state.

For many years, countries like Portugal, Germany, and the United Arab Emirates dominated the conversation around tech relocation. However, rising costs, regulatory complexity, and market saturation have priced many companies out—or forced them to reconsider their options.

Increasingly, founders are realizing that waiting too long to enter a high-growth market can be costly. Once demand spikes, commercial rents increase, talent becomes scarce, and competition intensifies.

Serbia currently occupies a rare position:

• Strong government backing for AI and IT

• Lower operating and labor costs

• High-quality technical talent

• Expanding digital and physical infrastructure

• Strategic geographic access to Europe

This combination makes Serbia especially attractive for AI companies looking to establish regional hubs, R&D centers, or long-term European operations.

Artificial intelligence requires more than talent and software—it requires serious computing power and data infrastructure. Serbia has made this a national priority.

Tier IV National Data Center in Kragujevac

Serbia is developing a Tier IV government data center complex in Kragujevac, designed as a national digital backbone. Tier IV represents the highest level of reliability, redundancy, and uptime available globally.

This facility is intended to serve:

• State digital systems

• Commercial AI and IT operations

• Enterprise-grade data hosting

• High-availability computing workloads

While Kragujevac is traditionally known as an industrial and manufacturing center, this project positions it as a strategic digital hub within Serbia.

Beyond data storage, Serbia is actively investing in supercomputing capabilities to power AI development.

The Serbian government has already installed multiple national supercomputers and announced plans for additional systems based on NVIDIA superchip architecture, with implementation targeted for 2026.

This places Serbia at the forefront of AI-focused supercomputing in Southeast Europe, enabling:

• Advanced AI model training

• High-performance research and development

• Public-private AI collaboration

• Academic and commercial innovation

One of Serbia’s most ambitious initiatives is the National AI Factory, a €50 million project announced through a formal agreement with Atos Group subsidiary Eviden.

The project includes:

• Approximately €36 million allocated to supercomputing infrastructure

• Remaining funding dedicated to AI projects across healthcare, energy, transportation, and government

• Integrated AI software layers and applied use-case development

• Collaboration between government, academia, and private businesses

This initiative is part of a broader France-Serbia interstate cooperation agreement, underscoring Serbia’s growing international credibility in advanced technology sectors.

Serbia offers access to a highly skilled, technically proficient workforce, particularly in software development, engineering, mathematics, and AI-related disciplines.

While labor costs remain lower than in Western Europe and North America, this does not come at the expense of quality. Many foreign companies find that competitive salaries—often above local averages—result in strong retention, loyalty, and performance.

This balance allows businesses to:

• Build stable long-term teams

• Scale operations sustainably

• Reduce employee turnover

• Maintain high output standards

While Relocation Serbia continues to support individuals and families seeking residency through business setup, property purchase, or family reunification, there has been a notable increase in corporate-level relocation.

Foreign AI and technology companies entering Serbia typically require:

• Serbian company formation

• Business plans for banking and funding

• Commercial office or industrial space

• Local and foreign employee hiring

• Digital infrastructure setup

• Banking and payment systems

• Access to professional networks and R&D incentives

These projects are significantly more complex than individual relocations and require coordinated legal, financial, and operational support.

Serbia’s trajectory is further reinforced by EXPO 2027 in Belgrade, with over 100 countries already confirmed to participate. This global event is expected to:

• Attract substantial foreign investment

• Accelerate infrastructure development

• Increase international business presence

• Elevate Serbia’s global profile

Companies that establish themselves before this surge are likely to benefit from more favorable market conditions.

History shows that early movers benefit the most when countries transition into high-growth phases. Many investors missed opportunities in cities like Dubai, Lisbon, or Berlin by waiting too long.

Serbia currently offers:

• Lower commercial rents

• Greater workforce availability

• Less competitive saturation

• Strong upward economic momentum

For AI companies, timing may be just as important as strategy.

Serbia is no longer an emerging participant in artificial intelligence—it is an active contender. With strong government backing, expanding infrastructure, skilled human capital, and improving global rankings, Serbia offers a compelling case for AI companies looking to build long-term, scalable operations.

For those willing to move early, Serbia presents a rare alignment of opportunity, affordability, and momentum.

If you are considering establishing an AI, IT, or technology-driven business in Serbia, the process requires careful legal and strategic planning.
Relocation Serbia offers paid, in-depth consultations to assess feasibility, structure your entry correctly, and guide you through each step with precision.

Your move deserves a strategy.