The Baltic data center operator Delska is undertaking a significant expansion of its infrastructure capacity, a strategic move designed to meet the extreme power and cooling requirements of new artificial intelligence workloads. This initiative positions the company to service the growing demand from global hyperscale clients, whose AI and high-performance computing clusters are pushing server rack power consumption to unprecedented levels.
The expansion reflects a fundamental transformation occurring across the data center industry, driven by the widespread adoption of AI technologies. Traditional data facilities were not designed to handle the thermal and electrical loads generated by the dense clusters of graphics processing units essential for AI model training and inference. As a result, operators like Delska are re-engineering their facilities and building new capacity, creating a new class of data centers prepared for the next era of computation. This pivot toward high-density infrastructure is reshaping the digital landscape, turning regions with favorable energy and climate profiles into strategic hubs for global technology.
A New Threshold for Power and Cooling
The rise of AI has rendered previous benchmarks for data center power density obsolete. A decade ago, the average server rack consumed approximately 4 to 5 kilowatts of power. In recent years, with the growth of cloud computing, that figure climbed to an average of 12 to 17kW. However, these densities are insufficient for the demands of modern AI hardware. Workloads for training large-scale models can consume more than 80kW per rack, with some advanced chipsets requiring densities of 120kW or higher. Delska’s expansion is built to handle loads of up to 250kW per rack, placing it at the forefront of this industry-wide shift.
This exponential increase in power consumption generates a proportional increase in heat, creating a significant thermal challenge. Conventional air-based cooling systems, which circulate cold air through a facility, are generally considered ineffective for loads exceeding 50kW per rack. The intense heat produced by densely packed AI servers requires more efficient heat transfer methods. Consequently, the industry is pivoting to liquid cooling solutions. Technologies such as direct-to-chip cooling, where a liquid coolant circulates through a plate in direct contact with processors, can manage the thermal output of racks drawing 60kW to 120kW and beyond, making them essential for high-density AI clusters. The demand for AI-ready data center capacity is forecast to grow by an average of 33% annually through 2030.
The Hyperscaler Imperative
Delska’s strategy is directly aimed at servicing hyperscalers, the technology giants like Amazon, Google, and Microsoft that dominate the cloud computing market. These companies operate on a massive scale, requiring data centers that are far larger and more complex than traditional enterprise facilities. A hyperscale data center typically houses a minimum of 5,000 servers and can occupy millions of square feet. As these companies build out their AI services, they require infrastructure partners who can meet a stringent set of criteria.
The most critical requirement is access to massive amounts of reliable and scalable power. Hyperscale facilities can draw over 100 megawatts of power, with future AI-focused data centers expected to consume even more. Providers must also guarantee exceptionally high levels of uptime, often using Tier III or Tier IV classifications that mandate redundant power and cooling systems to prevent costly outages. Flexibility is another key demand; hyperscalers need the ability to rapidly expand their footprint, adding space, power, and network resources as their computational needs grow. Delska, which describes itself as a “pure infrastructure player,” focuses on these foundational elements to meet the specialized needs of this elite client base.
The Baltic Region’s Strategic Ascent
The Baltic states of Estonia, Latvia, and Lithuania are rapidly emerging as a strategic destination for data center investment, uniquely positioned to meet the demands of the AI era. The region offers a confluence of geographic, economic, and energy advantages that make it highly attractive for developing the next generation of high-density data centers.
Natural and Economic Advantages
One of the most significant advantages is the region’s cool climate. In a data center, cooling is a primary operational expense, and the naturally temperate or cold climate allows for “free cooling,” where outside air can be used to manage temperatures for a large portion of the year. This dramatically reduces the reliance on power-hungry mechanical chillers, lowering both operational costs and the facility’s carbon footprint. Furthermore, the Baltic states offer ample land availability and government support for digital infrastructure projects, streamlining the development process for large-scale facilities.
Connectivity and Green Energy
The region boasts robust connectivity, with extensive domestic fiber optic networks and multiple sub-sea cables providing low-latency links to major European hubs. This strong network infrastructure is critical for hyperscalers that serve a global customer base. A key differentiator for the Baltics is the strong commitment to renewable energy. Estonia, for instance, has set a target to source 100% of its electricity from renewables by 2030, while Lithuania is aiming for 70%. This focus on green energy is a powerful draw for hyperscalers, who are under increasing pressure to meet sustainability goals and reduce the environmental impact of their massive energy consumption.
Delska’s Role in Regional Growth
Delska itself is a product of the region’s evolving technology landscape. The company was formed through the merger of established Latvian and Lithuanian firms, creating a unified infrastructure group with facilities and networks extending from the Baltics to Frankfurt. The company is led by Chief Executive Andris Gailitis, an industry veteran with 30 years of experience who has been involved with the region’s internet infrastructure since its commercial inception. His leadership provides deep expertise in the core requirements of network and data center operations.
The company’s expansion plans are already taking concrete shape. As part of its broader strategy, Delska is developing a new data center in Riga, Latvia, which is slated to go live in 2025 with a potential power capacity of up to 30 megawatts. This project is a clear indicator of the company’s commitment to building out the high-capacity, AI-ready infrastructure that hyperscalers now require. By focusing on these foundational elements, Delska is not only positioning itself for growth but also contributing to the Baltic region’s establishment as a key hub in the global digital economy.