Technology
Cyprus has the potential to become a key location for data centres, according to Andreas Poullikkas, an expert in energy systems and former chairman of the Cyprus Energy Regulatory Authority (CERA).
However, he stressed that careful planning is required to address the high energy demands of such facilities.
In his analysis, Poullikkas explained that data centres play a crucial role in storing, processing, and managing digital information.
The former CERA chief noted that their energy consumption is a significant concern, as governments and international organisations push for lower carbon emissions.
“The electricity consumption of data centres is constantly increasing due to the global demand for cloud services, big data, and artificial intelligence,” he said.
He mentioned that “major technology companies such as Google, Microsoft, and Amazon are investing heavily in renewable energy to reduce their carbon footprint”.
“Some data centres are being built close to renewable energy sources to ensure direct supply,” Poullikkas said.
“Innovative technologies such as water cooling, natural cooling, and energy-efficient processors are being implemented to cut down energy consumption. In some cases, backup power is provided by batteries or even hydrogen,” he added.
Poullikkas also pointed to some of the world’s most advanced data centres as examples.
“Google operates data centres worldwide, including in the United States, Belgium, Ireland, and Finland, all powered entirely by renewable energy, primarily solar and wind,” he said.
“Similarly, Microsoft has over 60 data centre regions globally, including in the Netherlands and Denmark, and has pioneered underwater data centres. Amazon Web Services (AWS) also relies on renewable energy, with its Dublin data centre running predominantly on wind power,” he continued.
“Meanwhile, Meta’s facilities in Denmark and Sweden use 100 per cent renewable energy and incorporate innovative cooling techniques.”
Moreover, he stated that another growing topic of discussion is the use of nuclear energy for powering data centres.
Poullikkas noted that small modular nuclear reactors (SMRs) could be a viable solution.
“The increasing energy demands of data centres, combined with the need for low-carbon and reliable electricity, have led to discussions about nuclear power as an option,” he said.
“SMRs offer several advantages, including smaller size and cost compared to traditional reactors, increased flexibility in site selection, and enhanced safety mechanisms. This trend is gaining traction among major technology firms,” he added.
Poullikkas also highlighted the impact of geographical location on data transmission speed, stating that proximity to end users is a critical factor.
“The closer a data centre is to users, the lower the latency,” he said. “Response times can be affected by distance, especially in real-time applications and financial transactions.”
“Network congestion and the quality of intermediate networks also play a role,” he added.
While the Mediterranean is not currently a major hub for data centres, Poullikkas said, the trend is shifting.
“There has been increasing interest in the region, particularly due to its connections with the Middle East and North Africa,” he stated.
“More data centres are expected to be established in the Mediterranean in the coming years, primarily in strategic locations linked to submarine cables,” he added.
However, Poullikkas cautioned that “the region is unlikely to see the same concentration of data centres as Northern Europe due to climate and energy constraints”.
For Cyprus, this presents an opportunity to attract investment in data centre infrastructure, he explained.
“Cyprus could encourage strategic projects from global technology giants like Microsoft, Google, and Amazon,” Poullikkas stated.
“While establishing data centres here requires careful planning to meet high energy demands, with the right approach, solar energy could be utilised alongside future small modular nuclear reactors and electricity interconnections,” he concluded.Follow Cyprus Mail on Google News
