EconomyMontenegro eyes AI and data centers as key drivers for economic growth

Montenegro eyes AI and data centers as key drivers for economic growth

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Montenegro is positioning itself as a regional hub for data centers and advanced AI projects, according to the “AI DIRECTLY” conference opened by Prime Minister Milojko Spajić and investor Mohamed Alabbar, founder and chairman of Eagle Hills, Emaar, Americana, and Noon. They highlighted that the small country, leveraging affordable energy and strategic investments, could accelerate development faster than ever, noting that artificial intelligence will not just transform the labor market and economy but determine the global winners.

Prime Minister Spajić emphasized that small countries have a unique opportunity in the AI era, as size is no longer a decisive factor for success. He highlighted Montenegro’s advantage of cheap and readily available electricity, which is the primary “fuel” for AI operations and data centers. Spajić noted that the country has 12–13 fully eco-friendly sites for new hydropower plants, providing sustainable energy without harming the environment.

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Spajić compared Montenegro to Norway, Finland, and Slovenia, small territories with significant hydropower potential, which is crucial to balance solar and wind energy and supply stable base power for data centers. A single modern data center could consume over one gigawatt, nearly equal to Montenegro’s entire current electricity usage of 1–1.1 GW.

Mohamed Alabbar highlighted that AI should guide new development projects in Montenegro. He explained that AI offers significant advantages for small countries, enabling productivity comparable to nations with hundreds of millions of people, despite a smaller population. Alabar shared examples from his e-commerce operations where AI enables one million daily deliveries with only 120,000 employees, demonstrating automation’s efficiency.

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Alabar stressed the role of autonomous robotics and AI in logistics, design, and project visualization. Tasks that previously took months, such as architecture and project planning, can now be completed in days, showcasing AI’s speed, precision, and creativity. He emphasized that AI-driven development can improve quality of life, energy efficiency, pollution control, and urban planning, potentially creating AI-managed smart cities in Montenegro.

Banking expert Miloš Pavlović warned that AI implementation in banking must prioritize data reliability, suggesting local AI solutions based on proprietary datasets to maintain trust and efficiency.

Conference president Budimir Raičković noted that Montenegro’s opportunity lies not in large-scale industry but in adopting advanced technologies rapidly, particularly AI. He highlighted the role of youth in shaping the technological future, emphasizing the need for decisive action to attract global investments and improve public administration and economic growth.

The conference was organized by the Association of Managers of Montenegro, the Academy for Leadership, Management, and Corporate Governance (AMM), and NTP.

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