EPCG, CGES and CEDIS are advancing plans for a joint energy-sector data centre in Nikšić, with a public procurement process now covering the feasibility study and conceptual and technical documentation. The planned facility could use part of the former Željezara industrial complex for digital infrastructure serving Montenegro’s electricity sector. The three state-owned electricity companies intend to finance the project jointly. The documentation will establish the proposed centre’s capacity, investment value, construction phases and operating model. No final capital expenditure amount has yet been determined.
The facility is intended to consolidate and protect data and information-technology infrastructure used throughout Montenegro’s power system. Its potential applications include grid management, meter data, electricity trading, asset monitoring and other critical systems. CGES operates the transmission network and international interconnections, while CEDIS manages the distribution system and EPCG is Montenegro’s dominant electricity generator and supplier.
Centralising selected IT infrastructure could establish common approaches to cybersecurity, backup and disaster recovery, while reducing duplication across the three companies. The utilities signed a letter of intent, with the current procurement moving the initiative from a strategic concept towards assessment of a potential investment. The feasibility process will also determine whether the centre is designed solely around electricity-sector requirements or includes additional capacity for external customers. A commercial hosting component could turn the facility into a broader data-centre operation alongside its role as shared utility infrastructure.
The potential commercial model would depend on the scale of excess capacity and the conditions required to attract outside users. Montenegro’s market is relatively small, meaning a large facility could require regional or international customers if substantial additional capacity is developed.
External demand would depend on factors including electricity costs, international fibre connectivity, latency, data-protection requirements and service availability. Nikšić provides an industrial location for the proposed investment. The former Željezara complex has existing energy infrastructure and land, while EPCG has been examining new economic uses for the site following its acquisition. A data centre would have different infrastructure requirements from the site’s traditional heavy-industry activities. Instead of significant raw-material consumption, such a facility would require substantial electricity, cooling, connectivity and cybersecurity infrastructure.
Electricity demand would be an important factor in the project’s economics. Large data centres can require continuous power consumption, making energy efficiency, cooling systems and electricity sourcing relevant to the feasibility assessment. If commercial hosting is included, renewable electricity supplied by EPCG could potentially form part of the facility’s operating model as companies increasingly seek to reduce the carbon footprint associated with digital services.
The project also raises requirements for physical and digital security. Electricity infrastructure is increasingly dependent on digital control systems, with disruptions potentially affecting power supply, electricity-market operations and public services. A purpose-built facility could provide controlled access, physical protection and redundancy compared with dispersed legacy IT infrastructure. At the same time, concentrating critical systems in one location would require the feasibility study to assess backup locations, independent power supplies, communications redundancy and disaster-recovery systems.
The proposed data centre would support the increasing digital requirements of Montenegro’s electricity system as grid operations become more complex. The country’s EU integration process is also increasing requirements related to digital reporting, cybersecurity, system coordination and market connectivity.
The three utilities are therefore assessing an infrastructure project that could initially serve shared operational requirements while potentially providing additional commercial data-centre capacity. EPCG has been examining multiple energy and industrial activities at Željezara as part of efforts to develop the former steelworks into a diversified energy and production hub. The proposed data centre would introduce a digital-infrastructure component alongside those activities.
