New Data Center Developments in South-Eastern Europe

As Europe and Asia’s digital infrastructure expands to keep pace with rising data demands, South-Eastern Europe has emerged as a strategic hotbed for data center development. Spearheaded by Greece, this region is quickly becoming a digital and telecommunications gateway between continents. Fueled by substantial investments, groundbreaking partnerships, and transformative projects, these developments offer profound economic, technical, and geopolitical benefits. This article explores the newest and most exciting data center advancements, highlighting Greece’s role as a rising digital hub and the impact on neighboring nations, including Bulgaria, Romania, and Türkiye.

1. Crete’s IEX Cable Landing Station: Bridging Europe, Asia, and the Middle East

On the Greek island of Crete, a new Cable Landing Station (CLS) in Chania represents a landmark for South-Eastern Europe’s digital connectivity. Developed through a partnership between Grid Telecom and Quadrivium Digital, this CLS forms part of a larger 20MW data center campus project. A vital component of this facility is its connection to the IEX subsea cable, linking Europe with the Middle East and Asia through countries like Turkey, Israel, Saudi Arabia, and Egypt. This cable is critical, allowing data to flow seamlessly between these regions and transforming Crete into an indispensable access gateway.

The Crete CLS establishes a new data corridor that enhances Greece’s role as a pivotal digital node. By providing direct intercontinental connections, it facilitates rapid data transfer across Europe, the Middle East, and North Africa, a functionality that is increasingly essential in an era of globally interconnected networks. This infrastructure is designed to support next-generation services, addressing the demands of a digitally reliant economy while offering security and resilience for data traffic passing through Greece.

2. Athens’ Ambitious Data4 Campus: A €300 Million Investment in Digital Infrastructure

To further cement Greece’s digital credentials, Data4, a top-tier European data center company, has announced a €300 million investment in a new data center campus in Athens. This major project aligns with Greece’s digital ambitions, as the country seeks to expand its role as a European leader in data storage and processing.

Planned for the Greek capital, the Data4 campus will feature state-of-the-art facilities that cater to the needs of global clients, from cloud providers to multinational corporations. Acknowledging the environmental impact of data centers, Data4 has committed to prioritizing renewable energy sources and environmentally conscious operations in this development. Once complete, this campus will reinforce Athens’ position as a central player in digital infrastructure, fostering a strong base for business, innovation, and connectivity across Europe.

3. Greece-UAE Digital Infrastructure Partnership: A Transcontinental Alliance

Greece’s journey to digital prominence includes an international partnership with the United Arab Emirates (UAE), symbolizing the country’s willingness to leverage global alliances for technological growth. The partnership, part of a broader strategic agreement, aims to co-invest in digital projects involving advanced technologies like artificial intelligence (AI), the Internet of Things (IoT), and smart city infrastructure. This collaboration underscores Greece’s growing reputation as an attractive market for digital investment while reinforcing its ties to the Arabian Peninsula, a region with aligned digital aspirations.

This alliance with the UAE adds not only expertise but also significant capital to Greece’s digital infrastructure landscape. It signals validation from an international player with a vested interest in establishing a cross-regional digital ecosystem that benefits both markets. Together, Greece and the UAE aim to strengthen their positions in the global digital economy by sharing technological advancements and accessing new markets.

4. Telecom Egypt and Grid Telecom: A Subsea System Linking Egypt and Greece

Adding to its list of international partnerships, Greece is collaborating with Telecom Egypt to create a subsea cable system connecting the two countries. This venture aligns with Greece’s national strategy for digital infrastructure, developed under the guidance of the Hellenic Ministry of Digital Governance, to streamline AI, data processing, and cross-regional digital traffic. The system promises to bolster Greece’s connectivity to North Africa and the broader Mediterranean region, supporting a multi-continental flow of data that is vital for industries reliant on seamless, high-speed digital connectivity.

Greek Prime Minister Kyriakos Mitsotakis has expressed strong support for this project, establishing an advisory committee to guide the national AI strategy and future-proof Greece’s digital capacities. By interlinking Europe with North Africa through advanced telecommunications, Greece is evolving as a cross-regional anchor in the data economy, solidifying its strategic position as a digital bridge.

5. Expanding the Regional Data Center Network: Bulgaria, Croatia, and Romania

Beyond Greece, neighboring countries in South-Eastern Europe are also strengthening their digital infrastructure through data center developments:

• Bulgaria: In Sofia, Equinix expanded its existing data center in 2023, doubling its capacity to 700 racks and investing over $12 million in the process. This expansion signifies a trend in Bulgaria’s data center market, which is projected to grow by 6.96% annually through 2028, reaching a market volume of approximately $201.7 million. As Bulgaria’s demand for data infrastructure increases, it positions itself as a viable hub for regional digital growth.
• Croatia: Zagreb is another rising player, with Digital Realty planning to expand its data center (ZAG1) and add 1,600 square meters of ICT space. Additionally, the company is set to establish a second hyperscale data center in the city, meeting the demand for advanced digital services across South-Eastern Europe.
• Romania: In Bucharest, Portland Trust, known for its infrastructure projects, is spearheading a large-scale data center initiative spanning 20,000 square meters. This project underscores Romania’s value as a digital hub, attracting major tech players seeking access to the European Union’s eastern markets. The new facility will provide scalable, energy-efficient digital solutions tailored to meet growing demands in cloud computing, data management, and ICT services.

6. Mystery Surrounding Google’s Massive Investment in Athens

Adding a touch of intrigue, Google has announced plans to invest €2.2 billion in Greece by 2030, including the construction of three data centers. Expected to be situated in northern Athens, the first center is projected to launch by 2025. This ambitious investment could create approximately 19,400 jobs, highlighting Google’s confidence in Greece’s digital future. While details remain sparse, the significant financial commitment signals Greece’s attractiveness to global tech giants and positions the country as a key player in South-Eastern Europe’s data ecosystem.

7. Saudi-Greece Collaboration on the “East to Med Data Corridor”

The “East to Med Data Corridor” is a joint venture between Saudi Arabia’s MENA HUB and Greece’s TTSA, creating a data cable linking the EU to the Middle East. This project aligns with Greece and Saudi Arabia’s shared strategic interests to leverage their unique geographical positions for global digital connectivity. By facilitating data flow between Europe, the Middle East, and Africa, this corridor supports the burgeoning global data economy, which depends heavily on high-capacity infrastructure. This Saudi-Greek partnership demonstrates a concerted effort to position both countries as essential players in data storage, transfer, and processing across continents.

8. Equinix Expands into Türkiye with the IB2 Data Center in Istanbul

Equinix’s new IB2 data center in Istanbul highlights Türkiye’s growing significance in global digital infrastructure. Designed to accommodate industries with critical connectivity needs, including finance, technology, and logistics, this center strengthens Türkiye’s role as a reliable data hub between Europe, the Middle East, and Asia. By enabling secure interconnections for its clients, the IB2 data center empowers businesses to expand their operations across these regions, underscoring Türkiye’s strategic importance in South-Eastern Europe’s digital landscape.

Conclusion

As these developments indicate, South-Eastern Europe is undergoing a digital transformation, spearheaded by Greece and supported by its neighboring nations. Through robust international partnerships, significant investments, and cutting-edge infrastructure, Greece is emerging as a key player in Europe’s digital future. By providing a high-capacity data corridor between Europe, Asia, and Africa, Greece is establishing itself as a major hub for global telecommunications and data traffic.

For countries like Bulgaria, Romania, and Türkiye, new data center projects promise not only economic growth but also greater integration into the global digital economy. As the digital landscape continues to evolve, South-Eastern Europe’s strategic investments position it as an indispensable connector in the global data network.

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References

• “Data4 to Invest €300M in Athens Data Center Campus,” Data Center Knowledge
• “The IEX Cable and Crete’s Role in Digital Connectivity,” TeleGeography
• “Equinix Opens New Data Center in Istanbul,” Data Center Frontier
• “Greece and UAE Sign Agreement for Digital Infrastructure,” Gulf News
• “Telecom Egypt and Grid Telecom Connect Egypt and Greece,” Egypt Today
• “The East to Med Data Corridor and Saudi-Greece Partnership,” Al Arabiya News
• “Google’s Plans for Data Centers in Greece,” Reuters
• “Portland Trust to Develop Bucharest Data Center,” The Diplomat Bucharest