Greece to Build New Data Center Hub with €300 Million Investment

According to Cointelegraph, Greece is making strides in the artificial intelligence sector with plans to establish a new data center. On September 12, the Paris-based company Data4 announced its intention to invest nearly 300 million euros ($331 million) in developing a data center hub in Paiania, near Athens. Olivier Micheli, CEO of Data4, stated that the company is in discussions with existing lenders and local Greek banks to secure funding for the project. Micheli emphasized that the new site would significantly contribute to the local economy and digital ecosystem.Data4 operates multiple data centers across six European countries, including Greece, and aims to invest €7 billion in expansion by 2030. The company has the capacity to develop two additional centers in the upcoming Greek hub for an extra €200 million, although these investments are still under negotiation with local authorities.Data centers are large facilities equipped with extensive computing resources to handle heavy workloads. In the cryptocurrency sector, Bitcoin mining plants are examples of such facilities, often located in regions with cheap energy to reduce operational costs. The most advanced AI models, like OpenAI's GPT-4 or Anthropic's Claude, require substantial computational power to function effectively. As these models become more integrated into daily life, data centers will be crucial in providing the necessary power.Major AI developers, including Microsoft, have been investing heavily in data centers and AI-related initiatives across Europe. In February 2024, Microsoft announced a $2 billion investment in Spain to develop AI data centers. However, data centers are expensive to operate, particularly in Europe, where energy prices are high. According to Eurostat, electricity prices for non-household consumers in Europe surged between 2021 and 2023, with a slight decrease in the latter half of 2023. Greece's energy prices are on the higher end, at just over €0.15 per kWh.Despite the high energy costs, Europe is proactively preparing for AI advancements. The EU AI Act, which regulates AI system development and deployment, came into effect on August 1, 2023. In October 2023, the Greek government established an AI advisory committee to develop a national strategy, comprising top tech, ethics, and science professionals. However, the EU's policies have faced resistance from major tech developers. In August, tech firms requested more time to comply with the regulations. In July, Meta announced it would not launch new AI products in the EU due to regulatory uncertainty. Apple also excluded new AI features from EU-based models of its latest iPhone 16, released on September 6.