1. Why data centers are important?
2. Europe’s energy and AI scene
3. Regulatory pushback and AI's future in Europe

Greece continues to slowly push its way into the burgeoning artificial intelligence (AI) scene in Europe, announcing new plans to build a data center in the country.

Why data centers are important?

Data centers are typically large facilities equipped with vast computing resources to power heavy workloads. In the crypto space, this is seen with Bitcoin (BTC) mining plants. Such facilities are typically located in places where energy is cheap, which helps make maintaining such an energy-hungry operation more cost-efficient. The world’s most powerful AI models, such as OpenAI’s GPT-4 or Anthropic’s Claude, require large amounts of computational power in order to operate at such a high level. As these models become increasingly integrated into modern life, data centers will play a crucial role in supplying the necessary power for them to function effectively.

Europe’s energy and AI scene

However, data centers don’t come cheap when it comes to energy and many key locations in Europe aren’t known for the lowest of energy prices. According to data from Eurostat, between 2021 and 2023, electricity prices for non-household consumers in Europe have skyrocketed. Although there was a slight dip in the second half of 2023, energy still isn’t coming cheap. The EU average price in the second half of 2023 was €0.15 per kWh, with Greece finding itself on the higher end of prices with just over €0.15 per kWh. Despite Europe’s costly energy situation, the continent has taken a proactive stance when it comes to preparing the region for AI developments. This year legislators across the EU signed their EU AI Act into law, which came into effect on Aug. 1. The AI Act regulates the development and deployment of AI systems within the region, to which Greece would be subject.

Regulatory pushback and AI's future in Europe

In October 2023, the Greek government established an AI advisory committee to create a national strategy, composed of some of the country’s top tech, ethics, and science professionals. However, the EU’s policies have already faced pushback from large tech developers seeking to launch their products in the area. In August, tech firms penned a letter to EU lawmakers asking for more time to comply with regulations. Prior to that, in July, Meta said that it would not be launching its new AI products in the EU, citing “regulatory uncertainty.” Apple just released its latest iPhone 16 on Sep. 6, which is equipped with new AI features that were left out of EU-based models.

Overall, Greece's new $330 million data center plans highlight the growing importance of AI and related computing capabilities in Europe. Despite the high energy costs and regulatory challenges, the region continues to actively develop infrastructure to support modern technologies.