UAE and Greece ink deal to boost digital infrastructure development

The Ministry of Investment of the UAE and the Ministry of Digital Governance of the Hellenic Republic have formalized a Memorandum of Understanding (MoU) aimed at establishing a framework for investments in digital infrastructure, specifically focusing on data center projects in Greece.

This agreement, signed by Mohamed Hassan Alsuwaidi, UAE Minister of Investment, and Dimitris Papastergiou, Minister of Digital Governance of the Hellenic Republic, sets the stage for the development of data centers with a collective capacity of 500 megawatts. Greece’s data center market has experienced remarkable growth, largely propelled by its Digital Transformation Strategy 2020-2025, which aims to digitize companies across the Hellenic Republic and integrate digital technologies across various economic sectors.

Projections suggest that Greece’s data center market will escalate to USD 1.218 billion by 2028 from USD 735 million in 2022, growing at an approximate compound annual growth rate of 9 percent. With plans to add 139 megawatts of power capacity from new data centers over the next five years, Greece is poised to emerge as the largest data hub in Southeast Europe and the second largest in the Mediterranean by 2028.

Moreover, Greece benefits from a network of over ten submarine cables connecting the country to vital global markets, supplemented by multiple inland internet exchange points, which significantly enhance connectivity, reliability, and attractiveness for businesses seeking efficient and dependable data exchange.

The MoU between the UAE and Greece emphasizes effective collaboration by fostering relationships between public and private organizations. Additionally, the agreement proposes the implementation of incentives to support relevant initiatives and aims to facilitate the exchange of knowledge.

Alsuwaidi emphasized, “The signing of this agreement strengthens the growing bilateral economic ties between our two nations and reflects a shared vision that recognizes the crucial role of technology and data processing in shaping a digital economy.” He highlighted that the planned investments in data center projects in Greece will contribute to the country’s rapidly growing digital infrastructure and offer businesses additional opportunities to capitalize on digitization.

Papastergiou echoed Alsuwaidi’s sentiments, stating, “Greece is on track to implementing the government’s strategic priority in establishing the country as a technological leader in the SE European region.” He affirmed the Ministry of Digital Governance’s commitment to realizing the Prime Minister’s vision of making Greece an attractive innovation hub, open to investments, and geared towards fostering the local technological ecosystem through strategic partnerships.

The signing of the MoU underscores the government’s dedication to solidifying Greece as a hub for international data transfers, amplifying the impact of technological innovation on the country’s development trajectory while bolstering international collaboration.

The MoU was signed amid a growing strategic partnership between the UAE and Greece. In 2022, the two countries announced a EUR 4 billion (USD 4.2 billion) fund to invest in the Greek economy. This was followed by a significant surge in non-oil trade between the nations, valued at nearly USD 572 million in 2021, reflecting a 67 percent growth compared to the previous year.