Abu Dhabi: A Memorandum of Understanding (MoU) has been signed by the Ministries of Investment of the UAE and Digital Governance of the Hellenic Republic, to establish a framework for investments in digital infrastructure, specifically focusing on data center projects in Greece.
The agreement was signed by HE Mohamed Hassan Alsuwaidi, Minister of Investment of the UAE, and HE Dimitris Papastergiou, Minister of Digital Governance of the Hellenic Republic.
Data centers to be developed under this agreement can reach a total capacity of 500 megawatts. The data center market in Greece has witnessed significant growth in recent years, largely driven by the country’s Digital Transformation Strategy 2020–2025, which aims to facilitate the transformation of companies across the Hellenic Republic into digital enterprises and incorporate digital technologies across its economic sectors. Projections indicate that Greece’s data center market will reach $1.218 billion by 2028 from $735 million in 2022, growing at a compound annual growth rate of approximately 9 percent.
With 15 data centers, Greece is set to expand its data infrastructure with an additional 139 megawatts of power capacity from new data centers planned for development over the next five years.
This positions the country to become the largest data hub in Southeast Europe and the second largest in the Mediterranean by 2028. Furthermore, Greece benefits from a network of over ten submarine cables linking the country to crucial global markets, which is further reinforced by multiple inland internet exchange points, resulting in significantly enhanced connectivity and reliability and an increased appeal for businesses seeking efficient and dependable data exchange.
The MoU between the UAE and Greece focuses on forging effective collaboration by building relationships between public and private organizations. The agreement additionally proposes the implementation of incentives to support pertinent initiatives and aims to facilitate the exchange of knowledge.
HE Mohamed Hassan Alsuwaidi, Minister of Investment of the UAE, remarked that, “The signing of this agreement strengthens the growing bilateral economic ties between our two nations and denotes a shared vision that recognizes the crucial role of technology and data processing in shaping a digital economy. The planned investments in data center projects in Greece are set to contribute to the country’s rapidly growing digital infrastructure and provide businesses with additional opportunities to reap the benefits of digitization.”
The MoU was signed against the backdrop of a growing strategic partnership between the UAE and Greece. In 2022, the two countries announced a $4.2 billion fund to invest in the Greek economy. This was followed by a notable surge in non-oil trade between the nations, with a value of nearly USD 572 million in 2021, reflecting 67 percent growth compared to the previous year.