Lithuania’s Investment Highway: Accelerating data center development in Northern Europe

Lithuania is transforming the timeline for data center development. The country’s new Investment Highway initiative, which entered into force on November 1, 2025, allows projects to progress from decision to construction twice as fast as before.

For an industry where time to market increasingly determines competitive advantage, this represents a shift in how fast hyperscale facilities can be deployed in Northern Europe.

Streamlining the path to construction

The Investment Highway accelerates the pre-construction phase for data center projects by cutting bureaucracy and simplifying planning. Operators can begin construction immediately after publishing a construction notice, eliminating permit waiting periods while maintaining environmental assessment requirements.

The framework also enables phased construction, allowing work to commence on completed sections of the technical project while other components remain in design, ensuring optimal project speed.

“This acceleration comes at a critical moment as European data center capacity struggles to keep pace with exponential demand growth driven by AI workloads and Edge computing requirements,” says Edvinas Grikšas, Lithuania’s minister of the economy and innovation.

“Project development times in Lithuania have already been reduced from 36 to around 19 months nationwide, and to just 9 months within the Free Economic Zones. Our focus now is to build on this foundation – turning faster processes into a long-term competitive advantage, powered by renewable energy, skilled talent, and a strong culture of innovation.

“Lithuania’s ambition is to become the region’s most agile and future-ready destination for large-scale digital infrastructure and to ensure that by 2030, every second job in the country generates high added value.”

There are also substantial financial incentives accompanying the Investment Highway. Qualifying projects – those exceeding €20 million in capital investment – can access 0 percent corporate tax for up to 20 years. The framework also addresses critical operational needs through fast-track migration procedures that streamline visa processing and work permits for international specialists.

Additionally, the government facilitates tailored education programmes with local technical universities, developing custom training curricula aligned with operators’ specific requirements.

Power, connectivity, and climate

These accelerated timelines and other benefits are especially appealing given the foundations of Lithuania’s infrastructure. 76 percent of all electricity produced in the country comes from renewable energy sources, with commitments to reach 100 percent by 2028.

Green certificates are available to guarantee renewable energy attribution for every megawatt consumed, which is essential for operators facing increasingly stringent sustainability requirements from clients.

At the core of Lithuania’s power grid lies the Kruonis Energy Park, which exemplifies the country’s infrastructure readiness for data center development. Located next to the 900MW Kruonis Pumped Storage Power Plant, the site offers 75 hectares of ready-to-build greenfield with near-term access to 100MW of power capacity, expandable to 1GW.

Kruonis provides low-latency fiber routes to major hubs (Stockholm 12-16ms, Frankfurt 18-22ms, Amsterdam 21-25ms) and, as a site within the Kaunas Free Economic Zone, offers significant tax incentives, including zero percent real estate tax.

Local climate conditions also enhance operational efficiency. With ambient temperatures rarely exceeding 25°C (77°F) and averaging just 7.5°C (45.5°F) annually, the cooler climate can help lower cooling expenses compared to warmer regions. The 79 percent average humidity and stable weather patterns minimise environmental risks while benefitting cooling efficiency.

“Lithuania’s combination of renewable energy resources, robust grid infrastructure, and now the Investment Highway creates valuable opportunities for rapid data center deployment,” notes Elijus Čivilis, general manager at Invest Lithuania, the country’s investment promotion agency. “We’re enabling data center operators to establish facilities within timeframes that match the pace of digital transformation, not bureaucratic processes.”

All these benefits are further supported by Lithuania’s digital capabilities. The country is among EU leaders by the number of young professionals (ages 15-34) entering the ICT sector, with 70,500 ICT specialists in the market. Additionally, 85 percent of young professionals are fluent in English – a critical advantage for international data center operations.

Invest Lithuania serves as the single coordination point for Investment Highway projects, actively managing inter-agency processes and ensuring timeline compliance. Each qualifying project receives a dedicated case manager and direct government communication channels, eliminating the navigation complexities that can delay infrastructure developments.

For data center operators evaluating European expansion strategies, Lithuania’s Investment Highway offers a streamlined path through regulatory complexity. As traditional European hubs face capacity constraints, the country is positioning itself as a strategic alternative with renewable energy commitments, established infrastructure, and accelerated development timelines.

Ready to YES your data center in Lithuania?