The agreement between the Public Power Corporation (PPC) and Amazon Web Services (AWS) to establish a giga data center in Agios Dimitrios, Kozani, marks a historic pivot for the region. The project's first phase envisions a 300 MW power capacity, with the potential to expand to 1 GW, positioning the facility among the largest of its kind in Europe.
The Partnership Model and Division of Roles
The collaboration is built on a clear division of responsibilities. PPC will provide the construction and energy "shell," offering the land, buildings, and necessary power infrastructure. Conversely, AWS will install and operate the IT infrastructure, including servers and AI systems. Upon completion, AWS is expected to lease the facility for 15 years while purchasing energy from PPC through long-term renewable energy power purchase agreements (PPAs).
Investment Figures and Commitments
Despite the binding nature of the Memorandum of Understanding (MoU), the final investment decision remains subject to due diligence and regulatory approvals. The publicized financial figures require careful interpretation:
- The first phase's construction and energy infrastructure cost is estimated at €1.2 billion.
- The value of the IT equipment for the first phase could reach €10 billion.
- In a full-scale 1 GW development scenario, the total equipment value could exceed €30 billion.
It is crucial to note that these figures represent estimates of potential long-term technological value rather than currently committed investments.
Energy and Environmental Management
The choice of Kozani offers the advantage of existing energy interconnections. PPC plans to meet the data center's demand without saturating the national grid, utilizing its new renewable energy portfolio in Western Macedonia. Regarding water usage for cooling, the company maintains that the closed-loop system will require only 0.6% of the water previously consumed by the Agios Dimitrios lignite power plant.
