The rapid expansion of the digital economy - from AI and cloud computing to streaming and blockchain - is driving global demand for data centres at an unprecedented scale. These power-hungry facilities are becoming critical infrastructure, and with them comes a massive surge in electricity demand. For Ignitis Group, this is more than a global trend—it’s a national opportunity. By expanding renewable energy generation, strengthening grid infrastructure, and ensuring energy system flexibility, we are helping Lithuania become a preferred destination for sustainable, large-scale data centre investment.

The Surging Energy Demands of Data Centres

Data centres are among the most energy-intensive pieces of digital infrastructure. They require constant electricity not just to power servers and networking hardware, but also to keep them cool and secure. As workloads increase—especially those related to AI—their energy consumption is climbing fast.

The International Energy Agency (IEA) projects that by 2030, global data centre electricity use will exceed 945 terawatt-hours (TWh) annually—more than double current levels, and almost equal to Japan’s total electricity use today. AI workloads are a major contributor, with energy use from AI-specific data centres expected to quadruple in the same period.

Europe faces a similar trajectory. According to Beyond Fossil Fuels, data centre electricity demand on the continent could rise by up to 160% by 2030, reaching 287 TWh—surpassing Spain’s entire 2022 electricity consumption. This sharp rise poses a challenge not just for power grids, but for national and EU-level energy planning.

At Ignitis Group, we view this challenge as an opportunity. Our expanding renewable energy portfolio - including onshore and offshore wind, solar, and innovative biomass projects across the Baltic region and Poland - is crucial for meeting rising demand sustainably.

Why Renewable Energy Isn’t Enough—Yet

While the data centre industry is making strides toward sustainability, the transition is still underway. Most data centres today draw from traditional electricity grids, which often include a significant share of fossil fuels. Many rely on diesel or gas generators for backup power. However, an increasing number of operators are turning to renewable energy through power purchase agreements (PPAs), on-site solar installations, battery storage, and carbon offset mechanisms.

Leading cloud providers like Amazon Web Services (AWS) and Google have made high-profile clean energy commitments. Amazon claims it matches 100% of its annual electricity use with renewable energy and aims for net-zero carbon emissions by 2040. Google has gone further with a target of 24/7 carbon-free energy by 2030—meaning every data centre will run on clean energy around the clock, not just on paper but in real time. This hourly matching approach addresses a key issue with annual renewable energy claims: they often mask the fact that power still comes from fossil sources when the sun isn’t shining or the wind isn’t blowing.

According to the IEA, about half of the additional electricity demand from data centres by 2035 will be met by renewable sources. But to ensure stable, continuous operations, dispatchable (always-available) sources—like natural gas, nuclear, and geothermal energy—will remain essential. The optimal strategy combines high renewable penetration with firm, clean backup, robust storage, and systems that can adapt to variable energy supply.

This is exactly where we come in. Our work is not limited to clean energy generation - we are also focused on providing the flexibility and stability required to support high-demand users like data centres. Through investments in smart grids, energy storage, and balancing solutions, we are making it possible to integrate this growing demand into a clean, stable, and secure energy system.

Why Lithuania Could Be a Data Centre Hotspot

Lithuania has a window of opportunity to position itself as a competitive location for next-generation data centres. Several factors align in its favour. First, renewable energy capacity is growing, especially in wind and solar.

Lithuania has committed to 100% renewable electricity by 2030, making it a credible partner for sustainability-focused tech companies. Second, chip prices are projected to fall, making smaller-scale, energy-efficient computing more feasible and opening the door for new players. Third, Lithuania already has solid digital infrastructure, a highly skilled workforce, and a cost-competitive business environment—all appealing to global operators.

Modern data centres are also becoming more energy-flexible, able to adjust their workloads based on grid conditions and renewable availability. This trend makes locations like Lithuania, with variable but increasing renewable output, much more viable.

We have a great location too. Kruonis is one of Lithuania’s most promising locations for data centre development. In addition to hosting our hydro pumped storage plant, site offers 75 hectares of available land and is directly connected to the national grid via multiple 110kV and 330kV lines. It can support up to 100 MW in the near term, with long-term potential beyond 1,000 MW. Its central location and access to cross-border interconnections with Poland and Sweden make it well-suited for data centres requiring high power availability, scalability, and secure connectivity to European markets.

The Bottom Line

As data centres become essential to global progress—and increasingly scrutinized for their environmental impact—countries that can offer both digital readiness and clean energy will win out. Lithuania has the right conditions to become one of those leaders.

At Ignitis Group, our work directly supports this vision. From growing green energy capacity to enabling grid stability and offering long-term infrastructure solutions, we are helping transform Lithuania into a competitive and sustainable digital hub. For all of us, this is a reminder of the broader impact of our work.

For more information please contact Junior Innovation Expert Beatričė Matiukaitė, [email protected]