PPC and AWS agree on 1.2 billion euro data center at former Greek coal site

Agreement and site redevelopment

Public Power Corporation (PPC) and Amazon Web Services (AWS) signed a binding memorandum of understanding on 17 September 2026 to construct a data center in Agios Dimitrios, located within the Kozani regional unit of Western Macedonia. The initiative redevelops an industrial area historically dedicated to lignite coal-fired energy production into a hub for digital services, cloud computing, and artificial intelligence. Under the agreed framework, PPC will provide the real estate, existing industrial buildings, and primary electrical connection assets. AWS will furnish, install, and operate all computing and networking information technology equipment. Once construction is complete, AWS will occupy and operate the site under a 15-year commercial lease. PPC considers the project a central component of its plan to transition the Western Macedonia coal basin into a clean energy and technological zone.

Phase 1 capacity300

Maximum planned expansion1,000

Phase 1 capacity

300 MW

Maximum planned expansion

1000 MW

Data from the article text

Phased capacity and capital expenditure

The project is structured in two distinct phases, commencing with a data center configured for 300 megawatts of power capacity. PPC and AWS hold options to expand total site capacity to 1 gigawatt, subject to market demand, mutual consent, and further definitive contracts. Capital expenditure for the initial 300-megawatt phase is set at 1.2 billion euros. A full buildout to the 1-gigawatt maximum would bring aggregate investment in the Kozani facility to 5.75 billion euros. Commercial execution remains contingent on standard closing conditions, including the completion of corporate due diligence, securing necessary electrical grid connections, and obtaining administrative authorizations from relevant regulatory authorities.

Initial phase1.2

Full expansion5.75

Initial phase

1.2 € billion

Full expansion

5.75 € billion

Data from the article text

Renewable power supply and grid management

Energy supply to the facility will be governed by long-term bilateral Power Purchase Agreements (PPAs) based entirely on renewable electricity. This green procurement structure directly supports Amazon's corporate target of reaching net zero carbon emissions across all global operations by 2040. PPC plans to power the center primarily through dedicated local generation assets, including new solar photovoltaic parks, battery energy storage systems, and pumped-hydro storage units across Western Macedonia. Developing an independent local supply architecture is intended to prevent network congestion on the national electricity grid and ensure that large industrial demand does not exert upward pressure on retail consumer electricity prices. The Agios Dimitrios site offers ready industrial land, preexisting environmental and industrial licensing, and established regional grid corridors.

Broader cloud partnership and corporate context

In addition to the physical data center, the memorandum establishes framework discussions for a multi-year partnership covering cloud computing and artificial intelligence technologies. PPC plans to draw on AWS technical expertise to support its own corporate digital transformation as the utility expands its retail and commercial operations. Bilateral negotiations between PPC and AWS concluded after several months of discussions leading to the formal announcement on 17 September 2026. The move follows operational challenges for AWS elsewhere, including physical strikes from Iran on data centers in Arab countries that caused data losses earlier in the year.