The Hidden Energy and Water Costs of Data Centers in Greece
Public discourse focuses almost exclusively on the supposed benefits of the “digital transition,” without examining the actual energy and water footprint of these facilities. The country is presented as ready to welcome a heavy digital industry, yet without the necessary independent studies having been conducted beforehand to document that the electrical grid, water resources, and local infrastructure can actually support loads of this magnitude.
The reality is that hyperscale data centers are not merely high-tech investments. They are energy-intensive industrial facilities that require enormous amounts of baseload power, water, and cooling infrastructure. When these costs are not covered by investors, they are inevitably passed on to the public grid and ultimately to consumers. The debate over “cost neutrality” has no technical basis, particularly in a country where there are no published quantitative studies on the impact of such loads on the electrical system.
A typical example of this misunderstanding concerns IT load. This refers to the total amount of electricity consumed by IT hardware and equipment, excluding supporting infrastructure, cooling, and lighting. An AI data center with a 300 MW IT Load does not consume 300 MW from the grid. IT Load refers exclusively to the power consumed by servers and GPUs. Actual consumption depends on the PUE metric, which measures the energy efficiency of the entire infrastructure. Even a good PUE of around 1.2 increases the required power to 360 MW, with an annual consumption of 3,153,600 MWh. In the case of AI data centers, where cooling needs are significantly higher due to GPU clusters, the PUE can easily reach 1.5. In this case, the actual power draw from the grid reaches 450 MW, or 3,942,000 MWh per year. The difference from the theoretical minimum of 2,628,000 MWh is not negligible. It corresponds to 1.31 TWh, an amount equivalent to the annual consumption of an entire region such as the Region of Epirus with 320,000 residents. This is precisely why such infrastructure requires massive independent investments in energy sources so as not to burden a country’s traditional power grid.
Equally serious is the issue of water. Hyperscale data centers, especially those that use water cooling, require between 1 and 5 million cubic meters of water per year. In a country with marked seasonality, water stress, and regions already facing water scarcity issues, the availability of such quantities cannot be taken for granted. It is essential to clarify that the provision and cost of water for cooling must be covered exclusively by investors and not by public water resources, rivers, reservoirs, or hydroelectric facilities. Anything else would amount to a transfer of costs and environmental risks to local communities and agriculture.
The additional demand from data centers is not neutral for the energy market. According to analyses by Eurelectric, the increase in demand could lead to a rise in production costs of 20% to 60% by 2028. Globally, the rapid growth of data centers has already increased production costs by 5%–15% and wholesale prices by 2%–6%. Data centers operate continuously, regardless of the availability of renewable energy sources. When there is insufficient production from renewable sources, the system is forced to activate expensive imported natural gas units or deplete storage system reserves.
However, the widespread use of water cooling by these facilities creates a dangerous conflict of resource use known as Resource Cannibalism. The water consumed for cooling servers is diverted from pumped-storage reservoirs. This loss disrupts the essential hydrological cycles of pumping and generation, leading to the destruction of the power system’s flexibility, precisely when the grid needs it most to maintain balance. The cost of this systemic pressure and deficit management is not borne by investors; it is incorporated into system charges and ultimately passed on to consumers.
The case of Western Macedonia is a prime example of false certainty. The frequent claim that the region is “ideal” due to the existing high-voltage grids dating back to the lignite era is technically flawed. The existence of transmission lines does not automatically imply sufficient water, stable baseload power, or environmental carrying capacity. The region is already in a transitional phase, and the installation of energy-intensive digital infrastructure without comprehensive studies risks creating new dead ends.
International experience shows that countries that attract major data center investments do so under strict conditions. Portugal requires companies to fund network upgrades themselves and to ensure 100% renewable energy through their own storage systems. Ireland imposed restrictions when data centers began consuming 18% of the country’s electricity. The Netherlands froze new permits until transmission capacity studies were completed. None of these countries provided public funds without strings attached.
Greece cannot proceed with such a significant energy commitment without technical rationality. The installation of hyperscale data centers without independent, quantified studies on costs, energy consumption, cooling needs, and environmental impacts poses a serious risk to the country’s energy security. If investors do not bear the actual cost of the infrastructure they require, then the burden will once again fall on Greek consumers. Digital development cannot serve as an excuse for creating a new source of systemic fragility. The country needs a policy based on technical logic, not on media hype.
* The consumption and cost data presented are drawn from documented analyses by Eurelectric and international best practices in grid management in Portugal, Ireland, and the Netherlands.
Naftemporiki / Opinions, Friday, June 12, 2026