Albania is set to enter a new era of digital infrastructure as Israeli company ADC prepares to build the first-ever data center in the country, marking a major milestone for Albania’s technology, energy, and investment landscape. The project, valued at approximately €100 million, will be developed within the Economic and Technological Development Area (TEDA) currently under construction in Kashar, west of Tirana, by the Municipality of Tirana.
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| Data Center project in Tirana, Kashar |
A Landmark Project for Albania’s Digital Future
According to Israeli media, ADC was selected following the strengthening of bilateral relations between Israel and Albania, particularly in the fields of technology, cybersecurity, and strategic infrastructure. The data center will be built in a free economic zone near the Albanian capital, benefiting from special regulatory and fiscal conditions designed to attract high-tech investments.
The facility will initially operate with a capacity of 32 megawatts, with a future expansion potential up to 100 megawatts, placing it among the more powerful data centers in the region. The center will be powered by Nvidia’s Robin GPU processors, making it suitable for high-performance computing and artificial intelligence workloads.
This project is expected to significantly strengthen Albania’s position in the global digital economy at a time when demand for AI-enabled data processing is rapidly increasing.
What Is a Data Center and Why It Matters
A data center is a physical facility that houses computing systems and related components, such as servers, storage devices, and networking equipment. It is the backbone of modern digital services, supporting everything from cloud computing and government databases to financial systems, AI platforms, and cybersecurity operations.
For Albania, hosting its first large-scale data center means:
- Reduced dependence on foreign infrastructure
- Increased data sovereignty
- New opportunities for the local IT sector
- Enhanced cybersecurity capabilities
- Attraction of international technology clients
In essence, this project represents a critical step toward digital independence and technological modernization.
Ownership Structure of ADC
ADC is jointly owned by two entities:
- Happy Technologies (80%), a cybersecurity and information technology company owned by Roi Shaposhnik, Noam Frank, Shlomi Avni, and Itai Melchior
- DIT (20%), a data center consulting firm led by experts Zvika Friedman, Nir Poltorak, and Dan Carmi
This ownership structure brings together expertise in cybersecurity, IT infrastructure, and data center development, ensuring the project meets international standards.
Fast-Tracked Approval and Government Support
One of the most striking aspects of the project is the speed of government approval. As a strategic project in a NATO member state and EU candidate country, the construction permit was granted in just 60 days.
The data center will be built on 1.8 hectares of government-owned land, with an option to expand by an additional 1.3 hectares, within the TEDA free economic zone.
The Albanian government has also ensured that critical infrastructure is prepared in advance:
- Communication and power infrastructure has already been laid
- OSHEE is building a dedicated electrical substation for the facility
- Albania’s national energy company will supply green electricity from hydropower sources, aligning the project with European sustainability goals
Financing Backed by the EBRD
On the financial front, ADC has secured a credit line from the European Bank for Reconstruction and Development (EBRD), covering 75% of the project’s total cost. This backing from a major international financial institution underscores the credibility and strategic importance of the investment.
The use of renewable energy and compliance with EU environmental standards were key factors in securing international financing.
Clients Already Secured
Even before construction is completed, the data center has already attracted three major clients:
- Infosoft, a leading Albanian technology company
- A German storage and data services company
- A client from the Albanian government, whose identity remains confidential
This early demand suggests strong market confidence and highlights Albania’s growing appeal as a data hosting destination.
AI, Green Energy, and Global Demand
ADC’s founders see enormous growth potential in serving European and American clients seeking AI data processing centers powered by green energy. Europe is increasingly viewed as an alternative to the United States, where data center expansion is facing regulatory, environmental, and energy supply constraints.
Albania’s abundant hydropower resources offer a competitive advantage, allowing data centers to operate with a low carbon footprint, a key requirement for international technology companies.
Strengthening Israel–Albania Relations
The project also reflects the deepening political and economic ties between Israel and Albania over the past two years. Cooperation intensified significantly after a major Iranian cyberattack on Albania in 2022, after which the country adopted Israeli cybersecurity technologies to protect government and private systems.
Relations strengthened further during the Gaza conflict, with Albania emerging as one of Israel’s closest allies in Europe. Albanian Prime Minister Edi Rama publicly condemned Hamas at the United Nations and made a high-profile visit to Israel during the conflict.
One month after the Gaza ceasefire agreement, Israeli defense company Elbit Systems signed a contract to supply artillery systems and drones to the Albanian Armed Forces, further solidifying strategic ties.
A Strategic Turning Point for Albania
The ADC data center project represents more than a single investment—it signals Albania’s entry into the global digital infrastructure market. By combining green energy, geopolitical stability, fast-track governance, and international financing, Albania is positioning itself as a serious contender for high-tech investments in Southeast Europe.
As construction progresses, the project is expected to create skilled jobs, attract further foreign investment, and lay the foundation for Albania’s digital economy in the decades to come.