The UAE Ministry of Investment and the Hellenic Republic's Ministry of Digital Governance have signed a Memorandum of Understanding (MoU) to establish a framework for digital infrastructure investments, with a focus on data center projects in Greece.
The agreement was signed by UAE Minister of Investment, Mohamed Hassan Alsuwaidi, and Hellenic Republic Minister of Digital Governance, Dimitris Papastergiou. This agreement fosters the development of data centers with a total capacity of 500 megawatts. The data center market in Greece has grown significantly in recent years, largely due to 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 into all economic sectors.
Establishing Greece as a Hub for International Data Transfers
According to projections, Greece's data center market will grow from USD 735 million in 2022 to USD 1.218 billion by 2028, with a compound annual growth rate of approximately 9%.
Greece is expanding its data infrastructure with plans for 139 megawatts of power capacity in new data centers over the next five years. With 15 existing data centers, the country aims to become the largest data hub in Southeast Europe and the second largest in the Mediterranean by 2028. Greece's connectivity is boosted by submarine cables and internet exchange points, making it attractive for businesses.
The UAE-Greece MoU aims to foster effective collaboration by establishing relationships between public and private organizations. The agreement also proposes implementing incentives to support relevant initiatives and aims to facilitate the exchange of knowledge.
Alsuwaidi said, "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."
Papastergiou also commented, "Greece is on track to implement the government's strategic priority in establishing the country as a technological leader in the SE European region. The Ministry of Digital Governance is committed to fulfilling the Prime Minister's vision of making Greece an attractive innovation hub, open to investments and geared towards flourishing the local technological ecosystem through strategic partnerships."
He added that the agreement demonstrates the government's commitment to establishing Greece as a hub for international data transfers, maximizing the impact of technological innovation on the country's development trajectory, and strengthening international collaboration.
The MoU was signed in the context of a growing strategic partnership between the UAE and Greece. In 2022, the two countries announced a 4-billion-euro (USD 4.2 billion) fund to invest in Greece's economy. This was followed by a significant increase in non-oil trade between the countries, which reached nearly USD 572 million in 2021, representing a 67% increase over the previous year.
