Greece is expanding its AI presence with a new data center near Athens, backed by a $331 million investment from Paris-based Data4.
Greece has recently announced intentions to construct a data center in the country, as it continues to gradually integrate into the rapidly expanding artificial intelligence industry in Europe.
Data4, a Paris-based company, announced on September 12 that it intends to allocate nearly 300 million euros ($331 million) toward the establishment of a new data center node in Paiania, a region located just outside the Greek capital, Athens.
Olivier Micheli, the CEO of Data4, stated in a Bloomberg report that the company is presently in discussions with local Greek banks and existing lenders to secure funding for the project.
Micheli stated that the new site would make a “substantial contribution to the local economy and digital ecosystem.”
The company has a €7 billion investment target for expansion by 2030 and manages numerous data centers in six European countries, including Greece.
Additionally, it has the capacity to establish two additional facilities in its forthcoming Greek hub for an additional €200 million.
Micheli, however, stated that negotiations with local authorities regarding the supplementary investments are ongoing.
What is the Purpose of Data Centers?
Data centers are typically expansive facilities that are outfitted with an abundance of computing resources to support heavy workloads.
Bitcoin mining facilities are an example of this in the crypto space. These facilities are frequently situated in regions where energy is inexpensive, such as Siberia, which facilitates the cost-effective operation of such an energy-intensive operation.
Large quantities of computational capacity are necessary for the most potent AI models in the world, including OpenAI’s GPT-4 and Anthropic’s Claude, to function at such a high level.
Data centers will be essential in providing the capacity to enable these models to function effectively as they become increasingly integrated into modern life.
Microsoft and other significant AI developers have invested in European data centers and AI-related initiatives. The company announced a $2 billion investment in Spain in February 2024 to develop AI data centers.
The Energy and AI Landscape in Europe
Nevertheless, data centers are not inexpensive in terms of energy costs, and numerous strategic locations in Europe are not renowned for their low energy costs.
Electricity prices for non-household consumers in Europe have experienced a significant increase between 2021 and 2023, as indicated by Eurostat data. Energy remains expensive, despite a modest decrease in the latter half of 2023.
In spite of the costly energy situation in Europe, the continent has taken a proactive approach to preparing the region for AI developments, whether for the better or for the worse.
The EU AI Act was signed into law by legislators throughout the EU this year and became effective on August 1. Greece would be liable to the AI Act, which governs the region’s development and deployment of AI systems.
In October 2023, the Greek government established an AI advisory committee to develop a national strategy. The committee comprises some of the country’s most distinguished science, technology, and ethics professionals.
Nevertheless, the EU’s policies have already encountered opposition from significant technology developers interested in introducing their products in the region. Technology companies submitted a letter to EU parliamentarians in August requesting additional time to comply.
Meta had previously announced in July that it would not introduce its new AI products in the EU due to “regulatory uncertainty.”
Apple released the most recent iPhone 16 on September 6, and it is equipped with new AI features that were not included in EU-based variants.
