Data Centers: The Legal Imperative for Renewable Integration and Energy Storage
(Article drafted by Ioanna Toufexi, Associate, and Kosmas Karanikolas, Senior Associate for Lexology on July 18, 2025)
Introduction: Data centres, as core infrastructure of the digital economy, have grown rapidly due to cloud computing, AI, IoT, and big data, but they also pose significant environmental challenges. They currently consume around 3% of global electricity, with demand projected to increase sharply. In Greece, over 500 MW of large-scale data center projects are underway, necessitating integration with renewable energy sources (RES) and energy storage for sustainability and legal compliance.
EU and Greek Legal Framework: The EU’s Energy Efficiency Directive (EED) and Delegated Regulation (EU 2024/1364) mandate annual sustainability reporting for large data centres and set energy efficiency targets aligned with the EU Green Deal and taxonomy rules. The Climate Neutral Data Centre Pact encourages voluntary industry commitments. Greece has transposed these requirements into national laws, such as Law 5069/2023 and JMD 96038/2024, which establish operational thresholds and notification requirements for data centres. Law 4951/2022 created a digital platform (PSAPE) to fast-track licensing for RES and storage, supporting the integration of green energy into data infrastructure.
Renewable Energy Integration: To reduce their carbon footprint, data centres can incorporate on-site RES (e.g., solar PV, wind) or use corporate Power Purchase Agreements (PPAs) for off-site renewable supply. Greece has streamlined licensing through JMD ΥΠΕΝ/ΔΗΕ/124788/4301/2022, promoting private RES development and PPAs. Geographic advantages in regions like Attica and Central Greece allow proximity between data centres and renewable generation, minimizing losses and grid congestion.
Energy Storage Role: Since RES are intermittent, energy storage is vital for reliability. Greece has updated its legal framework (Law 4951/2022 and RAAEY Decision 1163/2022) to support storage integration and market participation. JMD 96038/2024 introduces detailed rules for hybrid RES-storage systems, enabling services like load shifting and peak shaving. These capabilities allow data centres to enhance grid stability, reduce costs, and generate revenue through flexibility services.
Conclusion: The integration of RES and energy storage in data centres is essential for meeting EU climate and regulatory goals. Greece, through progressive legislation and its National Plan for Energy and Climate (NECP), has positioned itself as an attractive hub for sustainable data infrastructure. Compliance with EU directives and regulations is not optional but a prerequisite for legal operation, competitiveness, and resilience in the digital economy.
Read the full article here: Green Data Centers: The Legal Imperative for Renewable Integration and Energy Storage – Lexology
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