Hungary's flagship ICT and defence group 4iG, under scrutiny for its state contracts with the previous government, is establishing a new energy business and a dedicated holding company to build a regional energy portfolio in CEE and the Western Balkans, the company said on August 27, Economx.hu writes.

4iG said the move reflects the energy-intensive nature of its existing businesses, including telecommunications, digital infrastructure, data centres, space and defence. Building and acquiring its own generation capacity could help the group reduce its long-term exposure to energy costs while improving the predictability of its energy supply.

As part of the strategy, 4iG has signed a letter of intent with US-based X-Energy on the potential regional deployment of its Xe-100 small modular nuclear reactor (SMR) technology.

The initial cooperation will examine a regional pilot project, while 4iG's longer-term objective is to become a strategic partner and acquire stakes in nuclear reactors deployed in Central and Eastern Europe and the Western Balkans.

The Xe-100 is a fourth-generation, high-temperature, helium-cooled reactor technology. According to the company, its potential applications include supplying electricity to data centres and energy-intensive industrial facilities, both of which are closely linked to 4iG's existing businesses.

Viktor Orban during his visit to Washington in November 2025 sealed a major nuclear deal under which Hungary agreed to explore deploying up to 10 US-made SMRs, with an estimated value of $10-20bn. The government sought to position Hungary as a regional SMR hub. The broader framework also covers US nuclear fuel purchases and Holtec technology for spent-fuel storage at Paks, Hungary's sole nuclear power platn.

4iG is also expanding its renewable-energy ambitions. It has signed a preliminary cooperation agreement to acquire a medium-sized turnkey wind farm in Poland, with due diligence currently under way.

In North Macedonia, where 4iG is building a 5G network and plans to launch telecommunications services in 2027, the group is examining wind and related energy-storage projects that could involve more than 100 MW of generation capacity. It is also assessing opportunities to acquire additional power-generation assets in Montenegro with partners.

In Hungary, 4iG Investment, a wholly owned subsidiary, has submitted a binding offer to acquire investment units in the iG Tech Energy private equity fund. The transaction is the first step toward potentially acquiring a project company with a 49% stake in a portfolio of wind farms previously owned by Iberdrola.

The five wind farms in northwestern Hungary have a combined installed capacity of 158 MW, equivalent to almost half of Hungary's total installed wind capacity. If the transaction is completed, 4iG would cooperate as a strategic partner with Bucharest-listed Premier Energy, which holds the remaining 51% stake. The transaction series could be completed by the end of the year, subject to the offer's acceptance.

The move comes as the new government aims to boost wind capacity to 4,000 MW by 2030. Subsequently, a tender for grid capacity allocation for up to 1000 MW of wind energy would be called by August 31.

The Hungarian wind assets would provide the new energy business with an operating portfolio and a source of recurring revenues from the outset, while the planned projects in Poland and the Balkans would establish a platform for further regional expansion.

4iG, which employs 11,000 across three countries (Montenegro, North Macedonia, Albania) said the combination of operating renewable assets, new wind and storage developments and advanced nuclear technology is intended to create a diversified regional energy portfolio. The strategy also fits with the group's broader expansion beyond telecommunications into critical infrastructure, including digital infrastructure, space and defence.

4iGThe group employs around 11,000 people and is listed in the Premium category of the Budapest Stock Exchange.