Cross-Border AI/Data Centre Development
Options for the Trebinje–Dubrovnik Region

Trebinje–Dubrovnik AI/Data Centre — A Cross‑Border Digital Infrastructure Strategy

The Trebinje–Dubrovnik region has a rare combination of renewable hydropower, strategic geography, and Adriatic digital connectivity that makes it an ideal location for a world‑class AI/Data Centre. This concept compares two fully viable development pathways: a cross‑border, EU‑aligned facility in Dubrovnik powered by the shared hydro system, and a sovereign, cost‑efficient Trebinje‑only model powered solely by Trebinje‑1. Both are technically feasible, financially strong, and capable of generating major regional impact.

The Problem

AI, cloud computing, and high‑performance computing require massive, stable, low‑cost energy. Most regions lack the renewable baseload power, fibre connectivity, and geopolitical positioning needed to host hyperscale AI infrastructure. The Western Balkans also lacks a flagship digital hub capable of serving both EU and regional markets.

Main Points

• AI workloads demand 24/7 baseload energy — intermittent renewables cannot support GPU clusters.
• Hydropower is ideal — stable, predictable, and low‑cost.
• Regional digital infrastructure is underdeveloped — no existing AI hub.
• Cross‑border energy systems are rarely leveraged — Trebinje–Dubrovnik is a unique exception.
• Strategic positioning matters — EU jurisdiction vs sovereign control.

The Solution

Two development pathways unlock the region’s potential. The Cross‑Border Dubrovnik Model leverages EU alignment, Adriatic connectivity, and a large hydro surplus. The Trebinje‑Only Model prioritises sovereignty, speed, and cost efficiency. Both deliver strong financial performance, high job creation, and long‑term digital competitiveness.

How It Works

• Shared hydropower system: Trebinje‑1 feeds Dubrovnik HPP through an existing derivation tunnel.
• AI/Data Centre energy demand: 118–176 GWh per year.
• GPU cluster: 31,500–47,100 GPUs requiring 22–47 MW continuous load.
• Cooling: 8–15 MW (with seawater cooling in Dubrovnik reducing energy use by 30–40%).
• Connectivity: Adriatic fibre routes and submarine cables provide low‑latency global access.

Key Benefits

• Hydropower‑driven baseload energy ideal for AI workloads.
• High profitability due to low energy costs and strong demand.
• Major job creation and regional skill uplift.
• Strategic positioning between EU and Western Balkans markets.
• Scalable infrastructure with long‑term expansion potential.
• Two viable governance models depending on political priorities.

Two Development Models

Option 1 — Cross‑Border AI/Data Centre in Dubrovnik

• Hydro output: 1,136–1,186 GWh
• Data centre usage: 10–15% of total hydro
• Energy surplus: 960–1,068 GWh
• Annual revenue: €344M–€527M
• Net income: €324M–€518M
• Jobs: 350–500
• EU funding eligibility: Digital Europe, Horizon Europe, Interreg IPA CBC
• Best for: EU integration, hyperscale growth, international visibility

Option 2 — Trebinje‑Only AI/Data Centre

• Hydro output: 370–420 GWh
• Data centre usage: 28–47% of Trebinje‑1
• Energy surplus: 194–302 GWh
• Annual revenue: €344M–€527M
• Net income: €329M–€520M
• Jobs: 300–450
• Best for: sovereignty, speed, cost efficiency, local economic concentration

Balanced Strategic Conclusion

Both models are strong, profitable, and strategically meaningful. The choice depends on regional priorities:

• If the goal is EU integration, hyperscale growth, and international visibility: The Cross‑Border Dubrovnik Model is the natural flagship.
• If the goal is sovereignty, speed, cost efficiency, and concentrated local benefit: The Trebinje‑Only Model is the optimal path.

Both pathways can coexist in long‑term planning — one as a regional EU hub, the other as a sovereign Western Balkans compute centre.

Full Concept Page

For full energy modelling, financial analysis, job creation, and strategic evaluation, visit:
Trebinje–Dubrovnik AI/Data Centre — Full Concept