Data Centers in Thessaloniki
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Thessaloniki – Strategic Gateway to Southeast Europe
Thessaloniki is an emerging data center market providing a crucial digital entry point into the Balkans and Southeast Europe. For businesses requiring low-latency access to this developing region, Thessaloniki offers a cost-effective and geographically strategic alternative to more established European hubs. This market is ideal for content delivery networks, logistics firms, and enterprises targeting growth in Greece and its northern neighbors.
Thessaloniki: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Good national and regional fiber, but limited long-haul and subsea cable diversity. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | The nearest major cloud access hub is Athens, with connectivity via private network extension. |
| Power Cost | €0.09/kWh – as of July 2025 | Fossil fuels dominate the grid mix, but renewables are a significant component. |
| Disaster Risk | Low (3/10) – as of September 2025 | Primarily exposed to seismic risk, with moderate secondary coastal and flood risks. |
| Tax Incentives | No – as of September 2025 | Greece is working on asset protection schemes but offers no specific data center incentives. |
| Sales Tax | 24% VAT – as of September 2025 | A standard Value Added Tax applies to services. |
Network & Connectivity Ecosystem
Thessaloniki's connectivity ecosystem is developing, serving as a secondary hub to Athens while providing a strategic link to the Balkan states. The city benefits from national fiber networks and growing international connectivity.
Carrier Density & Carrier Neutrality: The market includes access to over 4 providers, as of September 2025. Carrier-neutral facilities offer interconnection between national and regional telecom operators.
Direct Cloud On-Ramps: There are no native public cloud on-ramps in Thessaloniki. Businesses connect to cloud providers by extending their networks to Athens, the primary interconnection hub for Greece, or other European hubs like Sofia or Istanbul.
Internet Exchange Points (IXPs): While most peering occurs privately or through Athens, local exchanges facilitate traffic exchange for regional networks, improving performance for local users.
Bare Metal: Bare metal server options are available in the region, often provisioned from providers in Athens to serve Thessaloniki workloads. Options from providers like OVHcloud and IONOS can deliver low-latency compute.
Power Analysis
Greece's power infrastructure is modernizing, with a focus on integrating renewable sources to complement its conventional power generation.
Average Cost Of Power: Industrial power is priced at approximately €0.09/kWh, as of July 2025. This competitive pricing makes the market attractive for compute-intensive operations, though it is subject to regional energy market fluctuations.
Power Grid Reliability: The power grid supporting Thessaloniki is reliable for commercial operations. Data centers in the region are supported by redundant power feeds and backup generation systems to ensure consistent uptime.
Market Access, Business & Tax Climate
Thessaloniki is Greece's second-largest city and a major economic center for the northern part of the country and the wider Balkan region.
Proximity To Key Business Districts: Data centers in the area serve the city's main industrial and commercial zones, including the Port of Thessaloniki, one of the busiest in the Aegean Sea. This proximity supports logistics, manufacturing, and trade industries.
Regional Market Reach: With its strategic location, Thessaloniki provides effective, low-latency digital services to neighboring countries, including Albania, North Macedonia, Bulgaria, and Turkey.
Tax Advantage For Data Centers: The current tax climate does not offer specific incentives for data center development or operation. The primary financial advantage comes from the country's strategic location and access to emerging economies rather than direct tax benefits.
Natural Disaster Risk
Thessaloniki has a low overall disaster risk profile, with an INFORM Risk score of 3 out of 10, as of September 2025. The most significant environmental threat is seismic activity, a common concern throughout Greece.
Key natural hazards include:
- Earthquake: 8.1/10
- Tsunami: 7.2/10
- Coastal Flood: 5.0/10
- River Flood: 3.8/10
While the earthquake risk score is high, building codes and modern infrastructure are designed to mitigate potential impacts. Tsunami and coastal flood risks are present due to the city's location on the Thermaic Gulf.