Greece Drafts Legislation Requiring Data Centers to Source 60% of Power From Renewables

Greece's Ministry of Environment and Energy has proposed new legislation that would require data centers operating in the country to source at least 60 percent of their electricity from renewable sources, as part of a broader regulatory framework aimed at tightening oversight of the rapidly expanding sector.

The draft legislation, which is now open for public consultation until October 24, 2026, introduces a series of provisions designed to ensure that data center development in Greece proceeds in an orderly and financially credible manner. Among the key measures, investors would be required to reserve grid capacity only after demonstrating sufficient financial backing and investment readiness, and would be obligated to cover the costs of grid connection and any related grid reinforcement work.

Under the proposed rules, data centers would also be subject to financial capacity checks, including turnover criteria for projects connecting to the transmission system. To deter speculative applications from flooding the grid connection queue, developers would need to provide a bank guarantee of €200,000 ($224,089) per megawatt. Additionally, the Regulatory Authority for Waste, Energy and Water (RAAEY) would be tasked with establishing a national data center registry to track sector developments and improve transparency.

The draft framework further introduces flexible grid connection agreements for areas with insufficient capacity, allowing grid operators to cap the amount of power a facility can draw within defined limits. Transmission and distribution operators would also be required to publish information every three months on available connection capacity by region. Separately, the proposals outline the creation of a €2.3 billion ($2.57 billion) Island Decarbonization Fund to finance projects that reduce reliance on oil-fired generation in favor of renewable energy and storage infrastructure.

The move positions Greece alongside Spain, which proposed similar legislation in August requiring data centers to source at least 80 percent of their electricity consumption from new renewable generation on an hourly basis. While Greece remains a relatively small data center market compared to other European countries, it has experienced significant growth in recent years. According to Data Center Map, the country currently hosts 29 operational facilities across 19 operators, with Digital Realty launching its first Greek data center on the island of Crete in April of last year.

The proposed legislation reflects a growing regulatory trend across Europe to align data center expansion with renewable energy targets and grid stability requirements. By imposing renewable sourcing mandates, financial readiness criteria, and transparency mechanisms, Greece aims to attract serious investment while preventing grid congestion and speculative development. The outcome of the consultation period, which runs through late October, will determine the final shape of the rules and could set a precedent for other emerging data center markets in Southern Europe.