Cyprus faces challenges in attracting artificial intelligence data centers

Professor Marios Dikaiakos of the University of Cyprus stated on August 14, 2026, that Cyprus is currently ill-equipped to host large-scale Artificial Intelligence (AI) data centers. The primary obstacles identified include the high cost of electricity, elevated ambient temperatures, and significant water scarcity, which is essential for the cooling systems required by these massive infrastructures.

Global distribution of AI computing power remains highly concentrated, with 75% located in the United States, 12–15% in China, and only 5% within the European Union. Dikaiakos emphasized that this concentration creates technological, economic, and geopolitical imbalances, as access to computing power has become a fundamental pillar of national competitiveness and sovereignty.

AI data centers represent a critical modern infrastructure, yet their environmental impact and high resource demand pose substantial risks for Mediterranean nations like Cyprus. The analysis highlights that without addressing energy and cooling inefficiencies, the country remains at a disadvantage in the global race for digital infrastructure development.