Georgia Builds a Tech Hub Beyond Silicon Valley

Silicon Valley remains the world’s dominant technology hub, but rising costs, tighter labor markets and shifting immigration rules are pushing some companies to look for lower-cost locations that can support international growth. The country of Georgia is positioning itself as one such base, offering tax incentives, infrastructure investment and a fast-growing ICT sector. 

As tech companies weigh alternatives, from London to Shenzhen to São Paulo, Georgia is making its case as a smaller but increasingly viable technology hub in Eastern Europe.

An alternative to high-cost tech hubs

Georgia’s fast-growing tech sector is rooted in both policy and timing. In 2020, the country introduced preferential tax treatment for IT firms, helping to attract international companies seeking lower-cost operating bases.

Recent shifts in the regional business environment have also brought an influx of IT companies and developers seeking new operating bases. Georgia has proved a natural choice, offering a stable environment and access to skilled talent.

Georgia’s strategic location at the intersection of Asia and Europe, its pro-business environment and access to plentiful, low-cost clean energy continue to attract foreign tech businesses. Of the country’s 24,000-plus IT companies, the majority originated overseas.

US tech multinational EPAM was among the first major players to set up in Georgia after tax incentives were introduced. Others have followed, including AI services provider Lineate, French digital outsourcer Teleperformance (TP), which employs nearly 2,500 people there, and UK-based software testing firm Exactpro, whose largest delivery hub is now in Georgia’s capital, Tbilisi.

The results are visible in the data. ICT has been Georgia’s fastest-growing sector since 2022, recording 31.6% year-on-year growth in the first nine months of 2025 to become the country’s fourth-largest sector. ICT exports in this period rose 52.3% year on year, with the US and UK among Georgia’s major software markets.

Scaling companies easily and efficiently

Georgia’s recent ICT growth reflects its broader effort to attract technology businesses through predictable rules, competitive costs and streamlined administration.

This is evident in the World Bank's 2025 B-Ready report, which assesses business and investment climates across 101 economies. Georgia is among the strongest performers for business entry, regulatory framework, operational efficiency and taxation.

Establishing and scaling a company in Georgia can take days rather than months. International investors consistently highlight the simplicity of company registration in a single day, transparent tax administration and unrestricted profit repatriation as major advantages.

That ease of entry is reinforced by targeted institutional support. The Investment Agency of Georgia provides end-to-end facilitation for companies establishing or relocating operations, while Georgia’s Innovation and Technology Agency supports startups, research and commercialization. Together with preferential tax regimes for international IT and R&D companies, the business framework is designed to reduce both setup costs and expansion risk.

The country is also expanding its technology ecosystem beyond Tbilisi by creating additional innovation clusters. A new tech hub in the former parliament building in Kutaisi, Georgia’s third-largest city, is scheduled to open this year. The site will host technology firms, coworking spaces and R&D facilities, while linking startups with academia and investors.

A focus on infrastructure and human capital

Georgia may also appeal to sustainably minded, power-intensive AI and data-services companies, as domestic hydropower produces around 75% of its electricity. The planned Black Sea Submarine Cable project is set to strengthen energy links with Europe and will include high-speed fiber-optic cable for improved digital connectivity.

Georgia’s focus on mobile networks has supported broad nationwide coverage and penetration, while Starlink’s satellite system is helping to extend high-speed connectivity.

While the surge of incoming tech talent from abroad may have peaked, Georgia is building its own domestic pipeline: Twenty-one universities offer specialized IT programs, producing a growing pool of multilingual graduates. Employment in Georgia’s tech sector almost doubled between 2021 and 2025, while Georgia-based developers on GitHub rose 22% year on year to 138,300 in 2024, signaling growing developer activity.

AI innovation draws investors

Advanced technology and artificial intelligence are a global investment focus, with 32% of foreign direct investors stating that technological and innovation capabilities are a key driver behind planning where to invest, according to Bloomberg Media’s 2026 Foreign Direct Investment Outlook.

Georgia's long-term competitiveness will increasingly depend on its ability to support higher-value AI and advanced technology activities, rather than competing on costs alone. The next phase of growth will depend on whether Georgia can move from cost advantage to capability advantage. As AI automates more routine development work, demand is shifting toward senior, specialized and AI-related roles. Continued investment in upskilling, R&D and digital infrastructure will be critical if Georgia is to expand ICT exports and move further up the value chain.

For global tech companies facing rising costs, hiring competition and infrastructure constraints, Georgia offers a lower-cost alternative with a growing record of technology investment.