Lithuania is positioning itself to capitalize on the rapidly growing demand for data centers in Europe, fueled by the expansion of artificial intelligence (AI). The country’s increasing reliance on renewable energy sources and robust digital infrastructure are key factors in attracting investment, according to industry experts.
The surge in demand for data centers is driven by the escalating computational power required for AI applications. Consultancy firm McKinsey estimates that IT workloads in this sector will more than triple by 2030, necessitating over $250 billion in investment in new data center infrastructure. This presents a significant opportunity for Lithuania to strengthen its position within the emerging AI economy.
“The increasing reliance on AI is creating a massive demand for computing power,” said Vygintas Domarkas, Head of Digital & Technology at Telia Lietuva. “As more images, sensors, and devices generate data, transmitting it to servers thousands of kilometers away becomes increasingly expensive and sluggish. Processes require to be performed closer to where the data originates.”
Domarkas highlighted the importance of factors such as reliable electricity supply, skilled labor, and high-quality connectivity in attracting data center investment. Lithuania appears increasingly competitive in these areas. According to the Lithuanian Energy Agency, local electricity generation met 67% of the country’s total electricity needs at the beginning of 2026, with projections indicating a rise to 80-85% this year – the highest level since the closure of the Ignalina nuclear power plant.
Solar and wind capacity are growing rapidly, exceeding 5 GW in September 2025, with thousands of prosumers joining the network each month. This growth in renewable energy is critical for data centers, which require substantial and sustainable power sources. A reliable power supply, synchronization with the continental European grid, and the development of green energy sources are ensuring long-term price stability.
Beyond energy, Lithuania boasts one of the most advanced fiber optic networks in the region, offering high-quality connectivity and low latency to Northern and Western Europe. The country also possesses a strong IT community, including network architects, electrical engineers, cybersecurity experts, and AI specialists capable of working with complex and high-reliability systems.
The increasing complexity of data transfer regulations, particularly concerning cross-border data flows, is also driving demand for local data center infrastructure within the European Union. Organizations are increasingly seeking solutions that comply with EU requirements, making countries like Lithuania attractive locations for new facilities.
Telia is already investing in this trend, having begun construction of a new 26 million euro data center in the Vilnius region. This project is intended to strengthen the country’s technological base and signal Lithuania’s readiness to compete in the European digital landscape.
Domarkas emphasized the need for continued investment in local electricity generation, technological innovation, and the development of a highly skilled workforce to fully capitalize on this opportunity. “Lithuania doesn’t have abundant natural resources – our strength lies in our people, innovation, and well-developed infrastructure,” he stated.
