Montenegro is positioning itself as a potential hub for EU green electricity data centres, but its competitive edge lies in smaller, specialized facilities rather than large hyperscale campuses. The country aims to develop a renewable-backed digital infrastructure platform that focuses on cloud redundancy, AI inference, sovereign data hosting, and cybersecurity workloads, all supported by reliable power supply.
The European Union is currently facing a significant challenge with the rising demand for data centres, which already account for approximately 1.5% of global electricity consumption, translating to around 415 TWh annually. Projections suggest this demand could exceed 945 TWh by 2030, primarily driven by AI workloads. In response, the European Commission is working on an energy-efficiency package that will introduce minimum performance standards and rating schemes for data centres. As EU capacity is expected to increase from 12 GW to 28 GW by 2030, future site selections will prioritize clean energy sources and grid access.
Montenegro’s political landscape is favorable for this transition, as the country is progressing toward EU membership with an accession treaty targeted for 2026. By 2028, Montenegro could align with EU regulations, offering legal protections and energy market rules that would attract data centre investments while maintaining lower operational costs compared to Western Europe.
The energy production landscape in Montenegro is noteworthy. In 2024, the country generated 2,122.1 GWh from various sources: 1,765.1 GWh from hydroelectric power, 293.3 GWh from wind, and 63.7 GWh from solar. However, total electricity consumption reached 2,804.9 GWh, indicating that while the renewable base is strong, coal-fired plants still play a significant role in the energy mix.
The energy demands of data centres are substantial; a single 50 MW facility could consume approximately 526 GWh annually at optimal efficiency levels. This amount represents nearly 19% of Montenegro’s total electricity consumption for 2024 and exceeds the combined output of wind and solar sources. Thus, any plans for green data centres must be closely linked to new renewable energy developments.
The collaboration between EPCG and Masdar to establish a joint venture focused on renewable energy projects is a positive step forward. This partnership aims to enhance domestic energy needs while facilitating renewable electricity exports to neighboring regions through existing interconnections with Italy.
The Gvozd wind project exemplifies potential growth in renewable capacity; its expansion will increase output from 55 MW to 75 MW, generating an additional 186 GWh of clean electricity annually. However, even this expansion would only cover about one-third of the annual requirements for a medium-sized data centre.
The existing submarine power connection with Italy provides Montenegro with a strategic advantage in both electricity and digital connectivity. A planned second cable will double the capacity to 1,200 MW, enhancing Montenegro’s role as a bridge between the Western Balkans and the EU.
The telecommunications sector in Montenegro is robust, with annual revenues around $369 million, significant investments over recent years, and high broadband penetration rates. The National Broadband Plan aims to enhance infrastructure further and align with EU standards for high-capacity broadband.
A state-driven initiative has also emerged with the selection of 4iG Group for digitalization projects that include establishing a data centre aimed at bolstering local capabilities in law enforcement technology.
The optimal strategy for Montenegro may not be to compete directly with larger European hubs but rather to carve out a niche as a green data-centre destination focused on regional needs such as cloud backup and e-government hosting. This approach aligns with the growing demand for sustainable solutions in the digital economy.
The challenges Montenegro faces include managing its electricity system size and ensuring that any claims of sustainability are backed by verifiable renewable energy sources. A comprehensive policy framework is essential to prioritize projects that contribute additional renewable capacity while ensuring transparency in reporting energy usage and environmental impact.
The government must avoid subsidizing speculative investments and instead focus on creating a disciplined policy environment that rewards projects contributing new generation capacity and local job creation.
If executed effectively, Montenegro has the potential to become an important player in the EU’s green data-centre landscape by leveraging its renewable resources, strategic location, and alignment with EU regulations.
