Greece to Invest $330M in New AI Data Center Near Athens

Greece is poised for a significant leap in its digital infrastructure with plans for a major data center to advance AI capabilities. The French company Data4 announced an investment of nearly €300 million ($331 million) to establish a new data center hub in Paiania, near Athens, as part of Greece’s strategy to strengthen its presence in the European AI landscape.

This announcement, made on September 12, highlights Greece's efforts to integrate more deeply into Europe's expanding AI ecosystem. Data4, a company managing data centers across six European countries, aims to make substantial contributions to the local economy and digital environment with this development. The firm is in discussions with lenders and local banks in Greece to secure funding, said Data4's CEO, Olivier Micheli.

With a broader European investment target of €7 billion by 2030, Data4 has plans to potentially expand the Greek hub by adding two more data centers for an extra €200 million, pending ongoing negotiations with local authorities.

The role of data centers is becoming increasingly critical in supporting large-scale computational tasks necessary for AI applications. These facilities, like those for Bitcoin mining, require significant energy resources. The world's leading AI models, such as OpenAI’s GPT-4, demand extensive computational power, underscoring the importance of developing robust data centers.

While AI-focused investments are gaining momentum, the challenge of high energy costs persists across Europe. According to Eurostat data, electricity prices for non-household users have surged over recent years, positioning Greece among the more expensive regions at over €0.15 per kWh. Despite these costs, Europe remains proactive in preparing for AI expansions, illustrated by legislative actions like the EU AI Act, which governs AI system development within the region.

In Greece, strategic advancements in AI are supported by the formation of a national advisory committee, tasked with shaping the country's AI roadmap, comprising leading tech, ethical, and scientific experts.

The regulatory landscape, however, presents challenges. Companies like Meta and Apple have expressed concerns about EU regulations, leading to delayed product launches and feature restrictions in the European market. Nonetheless, the European AI sector continues to advance, with Greece taking active steps to be a part of this evolving field.