Utilities are increasingly working with large technology companies, data center developers and investment partners to co-develop data center infrastructure that supports both digital services and energy transition objectives. In this model, utilities leverage generation assets, grid access and diversified energy portfolios to supply reliable, lower-carbon power to large computing facilities, while aligning grid and asset planning with long-term digital infrastructure demand. 

Data centers require large and continuous power supply with high reliability requirements, and partnerships with utilities can enable coordinated planning of capacity, location and energy sourcing at scale. This coordination can reduce uncertainty around grid connections and generation adequacy, particularly in regions facing rapid growth in electricity demand from digital infrastructure. 

At the same time, data center operators may provide advanced digital services, such as analytics, cloud computing and AI-based tools, that utilities can use to enhance operational data management and system insight. In some configurations, these capabilities support improved monitoring, forecasting and operational decision support, rather than direct control of grid assets. 

By combining energy supply with digital infrastructure collaboration, utilities can strengthen their role in supporting electrification and digital growth, while developing capabilities that extend beyond traditional power delivery. This model is emerging in regions where utilities have existing generation assets, grid infrastructure and land that can be paired with large-scale data center demand. 

Main outcomes of the solution 

• Affordability: Supports more efficient long-term capital and asset planning by aligning large, predictable data center demand with utility generation and infrastructure investments, helping manage financial risk associated with major capacity additions. 
• Reliability & Flexibility: Enables utilities to supply data centers with high levels of reliability by drawing on diversified energy portfolios, including renewables, storage and dispatchable generation, while coordinating capacity planning with grid constraints. 
• Business Value: Strengthens utilities’ strategic positioning by combining energy infrastructure with digital infrastructure partnerships, improving access to advanced data services, operational insight and new collaboration models linked to large, stable electricity customers. 

Key deployment and scaling factors 

1. Select sites at or near existing utility assets with available land, grid access and generation capacity. 
2. Ensure diversified energy portfolios, including renewables, dispatchable generation and storage, to meet high reliability requirements. 
3. Establish partnership agreements with hyperscale operators that define long-term capacity commitments and development timelines. 
4. Integrate high-capacity connectivity through utility-owned fibre networks or affiliated network providers where available. 
5. Align regulatory approvals and investment frameworks to support large, capital-intensive cross-sector projects. 

Case Study 

PPC Group (2025), Greece

In 2025, PPC, a PowerTech Group in Southeastern Europe and Greece’s largest utility, announced a strategic investment plan that includes the development of a 300 MW mega data center at the Agios Dimitrios power plant site in Western Macedonia. The project forms part of a broader €5.75 billion (c. USD 6.75 billion) investment initiative aimed at transforming former lignite mining areas into a green energy and technology hub for Greece and Southeastern Europe. This initiative complements a series of strategic initiatives aimed at shaping Greece’s digital future, bolstering technology and connectivity, such as PPC’s ongoing project with EDGNEX Data Centers by DAMAC that aims to develop a scalable 12.5 MW data center in Spata, East Attica. 

PPC has stated it is ready to commence construction once agreements with major hyperscalers data center operators are in place, with a target of operational readiness by 2027. The site benefits from existing industrial land, strong high-voltage interconnections and water availability for cooling, reflecting the technical advantages of repurposing former lignite power plant locations for large-scale data center development. The facility is planned to draw on a diversified local energy mix, including renewables, dispatchable natural gas generation, pumped storage and battery systems, with the intention of supplying the data center through a behind-the-meter configuration that limits additional load on the national grid. 

In addition, PPC’s fibre subsidiary, PPC FiberGrid, is expected to provide ultra-high-speed connectivity given its FTTH rollout in Greece, positioning the development as a combined energy and digital infrastructure hub. Subject to demand from hyperscaler partners, PPC has indicated that the site could be expanded in later phases to up to 1,000 MW of data center capacity.[1] 

References: 

1. PPC Group: €5.75 bn investments in green energy and technology transform Western Macedonia I PPC (April 2025)