Data centers in Albania - The challenge for electricity, from increasing production capacities to investments in the network
As an Israeli company aims to build the first data center in Albania, attention for this investment is also focused on electricity. This is because these types of infrastructures consume significant amounts of energy, which requires increased generation capacities, while according to the European Commission, the fact that this increase is followed by a lack of available capacity to connect to the grid is particularly challenging.
Data centers are a vital infrastructure that supports the growing trend of cloud data storage, social media usage, artificial intelligence, etc. According to the International Energy Agency, they are responsible for about 1.5%, or 415 tWh, of the world's total annual electricity consumption. This value has grown by 12% per year over the last 5 years and is projected to double by 2030.
In this context, investments are needed to increase the production capacity of electricity from renewable sources. Currently, Albania has high potential in this direction due to solar radiation or wind. Meanwhile, the energy transition pillar, foreseen in the Economic Reform Program 2026 – 2028, aims to create a transparent auction system for at least 600 MW of new renewable energy capacities. Meanwhile, over the years, there have been a number of private companies that have submitted applications for energy projects, some of which have been approved.
However, their connection to the grid remains a challenge, which according to the Energy Regulatory Authority requires increased investments in this regard. In fact, the 2025-2027 investment plan of the Transmission System Operator focuses on increasing the network's accommodating capacities in order to connect renewable energy plants, which are expected to be added to the electricity system. In total, the OST plans to make 16 billion lek investments or about 160 million euros for the development of the transmission network, including the above component. On the other hand, the Distribution System Operator's plan is being reviewed by the Energy Regulatory Authority, while the submitted draft focuses on increasing the capacities of existing substations and building new substations, to cope with the increase in demand and load on the network.
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