The hardware maker said it and its key suppliers may invest as much as 253 million euros ($321 million) in the growing Polish economy.
The facility in Lodz will be a Polish first for Dell and is expected to open with around 1,000 workers in autumn 2007.
Paul Bell, Dell's senior vice president for Europe, the Middle East and Africa (EMEA), on Monday said "the logic was to get closer to the customer," adding that the facility could also serve parts of Germany and Scandinavia.
Bell said the decision to settle on Poland over other countries was the result of "long discussions with the central government and city government. The focus has been on employment and training in high-quality areas." Bell declined to comment on whether the company had received financial incentives from the Polish government.
Dell's EMEA growth over the last three years has included establishing a new research-and-development center in Ireland and customer service centers in Germany, Morocco, Scotland and Slovakia. Dell already employs 100 people in its sales, marketing and technical support operations in Poland.
Silicon.com's Tony Hallett contributed to this report
Gemma Simpson of Silicon.com reported from London.