Industrial park in the territory of Kruonis PSHP

Kruonis Industrial Park project has been under development since 2010. The industrial park is to based in the territory of Kruonis PSHP owned by Ignitis Gamyba. The aim of the project is to attract a foreign investor developing large regional data centres and providing high-tech services.

The territory of Kruonis PSHP is ideal for data centre operations due to its existing infrastructure: high reliability systems of communications, power supply and logistics as well as the nearby Kaunas Reservoir whose water can be used for the cooling processes of the data centres. The park is located in a free economic zone and therefore offers tax benefits. Moreover, geographically convenient location allows to reach the largest Lithuanian cities and airports in less than an hour.

The 20 October 2010 Decree No. 1495 of the Government of the Republic of Lithuania recognised this project as a project of national economic importance, and the 21 December 2011 Decree No. 1515 assigned a part of the Kruonis PSHP territory to the area of Kaunas FEZ.

Since Kruonis PSHP is an object of strategic importance, it follows high security standards – this is also relevant for data centre developers. In Kruonis industrial park, the electricity price is up to 40% lower if compared to the rest of Lithuania, moreover, it is possible to connect to high-voltage networks in line with the highest requirements for the security of electricity supply.

Completed works

In order to increase the attractiveness of the territory for potential investors, in 2013–2014 the necessary engineering infrastructure was developed, including logistics, communications, water supply, and sewerage systems.

In order to reduce the administrative burden for setting-up business, in 2016 the procedures for changing the detailed site plan of the territory and assessing the environmental impact of the economic activities were initiated. In 2017, positive conclusions were received and a detailed site plan prepared, determining the building height limits, build-up intensity and other requirements in line with the needs of data centres.

In 2018, Lietuvos Energijos Gamyba together with Kaunas University of Technology launched a pilot floating solar power plant project in Kruonis PSHP. Aimed at scientific research and developing innovations, the project will be the first of its kind in the region, further increasing the attractiveness of the Kruonis Industrial Park for potential investors.

Advantages

Successful implementation of the Kruonis PSHP industrial park project would:

• Increase foreign direct investment in Lithuania and the country's attractiveness to potential foreign investors;
• Create jobs of high added value;
• Strengthen the image of Lithuania as a regional leader in IT (especially in the areas of high-speed internet, digital data transfer);
• Improve the regional infrastructure and increase the population in nearby cities.

Investments

In 2013–2014, the project for the installation of the engineering infrastructure in the territory of Kruonis PSHP was implemented using the EU structural funds for the period of 2007–2013, under the Invest LT instrument of Priority 2 of the Action Programme for Economic Growth ‘Increasing Business Productivity and Improving Business Environment’, VP2-2.4-ŪM-01-V.

In total, more than EUR 2 million have been invested in the territory of Kruonis Industrial Park in the period of 2011-2018. Most of these investments were funded by the EU.