Plans to build data centres in North Macedonia have sparked mixed reactions, ranging from hopes of attracting new investment and modernising the country's digital infrastructure to concerns about electricity consumption and environmental pollution.
However, after months of debate, the authorities are moving towards implementation, with construction of a national data centre for state institutions expected to begin next year.
North Macedonia plans to begin construction of a national data centre for state institutions in 2027, while potential private investments in commercial facilities could exceed $500mn, the Ministry of Digital Transformation has told IntelliNews.
The government-backed project, estimated at around €20mn, is at the preparation stage, with a feasibility study completed and state-owned plots near the Skopje Industrial Development Zone under consideration.
“Contracts are expected to be signed and construction to begin in 2027, although the final completion deadline will depend on the implementation contracts,” the ministry said in written answers provided by the Cabinet of Minister Stefan Andonovski.
Alongside the national facility, the government is considering private investments in commercial data centres, including a potential project worth at least $100mn in its first phase, with the possibility of the total investment exceeding $500mn.
“Foreign investors have expressed interest in data centre projects in North Macedonia, with discussions ongoing about potential investment opportunities,” the ministry stated.
However, the ministry stressed that discussions with foreign investors are ongoing and that no implementation agreements have been concluded. The names of the potential investors, as well as the locations and timelines of the private projects, have not been disclosed.
EU-backed financing for state data centre
The national data centre is expected to be financed through a model involving the European Union's Growth Plan, with 30% of the funding provided through grants and the remaining 70% through soft loans, the ministry said.
The facility is intended to serve state institutions, supporting the country's public-sector digital infrastructure. Its planned installed capacity is less than one megawatt, substantially limiting its electricity requirements compared with the larger commercial facilities being considered.
The ministry said the location would be selected with consideration for proximity to electricity infrastructure, while the final technical requirements would be determined as the project progresses.
The planned investment comes as governments across Europe seek to strengthen their digital infrastructure, improve the management and security of public-sector data, and expand the capacity needed to support digital public services.
Private investments raise questions over electricity supply
The potential commercial projects could bring substantially larger investments, but their development will depend in part on securing adequate electricity supplies and meeting the technical requirements for grid connections.
The ministry said private investors would be responsible for securing electricity under market conditions through appropriate supply contracts and by fulfilling the technical conditions for connection.
“Electricity supplies allocated for households will not be redirected to data centres,” the ministry said. It also ruled out subsidising electricity prices for private data centres.
The required power capacity and the availability of grid connections will be assessed separately for each private project, the ministry said.
These conditions are particularly relevant because data centres require continuous electricity to operate servers, networking equipment and cooling systems. The scale of their energy demand varies considerably depending on the size of the facility, its computing workload and its cooling technology.
While the planned national data centre will have an installed capacity of less than one megawatt, the power requirements of the potential commercial projects have not yet been specified.
Investment potential remains subject to agreements
The potential investment figures point to an opportunity for North Macedonia to attract capital into digital infrastructure, but the commercial projects remain at an exploratory stage.
The distinction is significant: the estimated values reflect possible investments rather than signed contracts or confirmed construction commitments.
For now, the clearest milestone is the planned start of construction of the national data centre in 2027. The timing, financing and electricity requirements of the larger private facilities will depend on the outcome of discussions with investors and the development of individual projects.
If realised, the investments could expand the country's data infrastructure and strengthen its position in the regional digital economy. Their implementation, however, will depend on turning the current proposals into concrete investment agreements and ensuring that the necessary infrastructure is available.