Greek Bureaucracy Held Up Microsoft Data Center Permit 4 Years

Economy

Greek Bureaucracy Held Up Microsoft Data Center Permit 4 Years

September 13, 2024

FILE - This July 3, 2014, file photo, shows the Microsoft Corp. logo outside the Microsoft Visitor Center in Redmond, Wash. (AP Photo Ted S. Warren, File)

ATHENS – Greece’s much-vaunted luring of foreign investors, especially in Information Technology (IT) has run head-on into the notorious bureaucracy that held up a construction permit for Microsoft’s first data center for four years.

That’s being built in the Eastern Attica region of Spata, where the international airport is, even one of the world’s biggest companies unable to accelerate the process while the government was touting how it was attracting foreign firms.

Other reasons for the delay, said Kathimerini, were a shortage of workers in the bureaucracy despite claims it was bloated with patronage hires, no accountability for service agents, the COVID-19 pandemic and elections stalling work.

Other factors included – besides red tape that goes along with the bureaucracy taking its time – competition between potential suppliers and subcontractors, archaeological permits and clearance from local governments.

Approval for Microsoft’s permit came the same day that the French technology company DATA4 announced an investment of 300 million euros ($332.88 million) to develop a data center campus in Paiania.

If the same happens in that case it could mean the French company won’t get its permit until 2028, despite the benefits to Greece such as Microsoft’s investment that will be 976 million euros ($1,081.74 billion.)

The Microsoft permits are now due to be issued imminently so that construction can begin for the first of what is planned to be three company data centers there, the other two starting building in 2025.

The announcement of the investment came on Oct. 4, 2020 during the pandemic but the report said it took high-level officials to finally get the permits cranked up to now let work begin, no reason given why it wasn’t done before.

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