Montenegro Utilities Plan Data Center at Nikšić Site

The project is still at an early stage. A tender is under way for a feasibility study and preliminary technical design, which will determine the facility’s capacity, phasing and investment needs before any final decision is taken. That sequencing matters: in a capital-intensive business such as data centers, the economics depend as much on cheap, reliable power and grid access as on demand for racks and storage.

That is where the Željezara site stands out. The former steelworks already has industrial infrastructure, high-voltage substations and grid connections, and it is increasingly being repurposed as an energy hub. EPCG has already turned part of the site toward solar generation and plans to add a battery energy storage system there with an estimated investment of EUR 48 million for 60 MW and 240 MWh. For the utilities, co-locating digital infrastructure with power assets could lower build-out costs, improve redundancy and support systems resilience.

The broader economic logic is straightforward. Montenegro is trying to position itself as a destination for green data centers, a pitch that relies on relatively low-cost power access and the country’s energy transition narrative rather than on the scale advantages of larger regional markets. If the study supports commercial viability, the data center could create a new service line for state utilities and help monetize underused industrial land, while also deepening domestic digital capacity.

For investors, the story is less about near-term earnings and more about strategic optionality. The upside case is that EPCG, CGES and CEDIS create a platform that leverages existing assets and potentially attracts third-party clients. The downside case is that the project becomes another long-dated public-sector capital commitment, with uncertain returns in a competitive data-center market that increasingly rewards scale, connectivity and financing muscle.

The next catalyst is the feasibility study and technical design. Until then, the key question is whether Montenegro is building a credible niche digital infrastructure asset — or merely repackaging an old industrial site for a sector that demands far more than available land and spare power.