PPC to Invest €2.3 Billion ($2.48 Billion) in Mega Data Center in Kozani

ΔΕΗ (Public Power Corporation - PPC) is implementing an ambitious investment plan totaling €2.3 billion ($2.48 billion), aimed at constructing the first phase of a mega data center in the Agios Dimitrios area of Kozani. The new data center, which will have a capacity of 300 MW, serves as a central pillar of the company's strategic development in Western Macedonia. As recently highlighted in the new investment plan of ΑΔΜΗΕ (Independent Power Transmission Operator - IPTO), strengthening energy infrastructure is a top priority for the country. The company is leveraging the €4.5 billion ($4.86 billion) in 'firepower' it secured through its Share Capital Increase (ΑΜΚ) and the placement of treasury shares.

Procurement of Electromechanical Equipment

According to the company's schedule, requests for proposals (RFPs) for the major procurement of long-lead electromechanical equipment, valued at €100 million ($108 million), are expected to be completed within June. This equipment includes, among other items, 400 kV interconnection gates, GIS (Gas Insulated Switchgear) substations, transformers, medium and low voltage panels, and generator sets (gensets).

It is noteworthy that this specific procurement has been designed with flexibility. Even in the extreme scenario where the data center project does not proceed, the equipment can be utilized in other PPC investment projects, such as Renewable Energy Sources (RES) and power grids.

Negotiations with Hyperscalers

Securing the necessary equipment provides PPC with a significant advantage in its ongoing negotiations with international technology giants (hyperscalers). According to market sources, the company's management is in discussions with four tech giants: Google, Meta, AWS (Amazon), and Microsoft. The goal is to enter into an agreement with one or more of these entities to create a joint venture that will undertake the development and management of the Mega Data Center, following the example of the Google and Blackstone joint venture for AI infrastructure.

SThe selection of the strategic partner is expected to be completed within three to six months, with estimates pointing to the end of summer as the most likely timeframe. PPC aims to begin construction at the end of this year, so that the project is completed and operational by 2028. For its part, the Greek utility has already secured its share of the capital expenditure (CAPEX), which amounts to €1.2 billion ($1.3 billion).

Project Characteristics and Energy Supply

The Mega Data Center will be developed over a total area of 50,000 square meters and will be specifically designed to meet the needs of technology groups for Artificial Intelligence (AI) applications and cloud services. As resource consumption by AI increases globally, one of the most significant innovations of the project is its power supply method. The required energy will be provided directly from production units (behind-the-meter), thus ensuring that its high energy demands will not burden the national electricity system.

International Expansion

The project in Kozani is the first step of a broader plan. As revealed in the presentation of its strategic plan, PPC is considering the development of data centers beyond Greek borders. The plan envisions the creation of AI Hubs in cities such as Bucharest, Warsaw, and Milan. These are markets where PPC already plans to expand through RES projects, storage systems, and flexible natural gas production units.