GREECE: An Introduction to TMT
Greece's TMT Landscape: Navigating Digital Transformation and Future Prospects
The TMT sector in Greece is undergoing a significant transformation, driven by strategic initiatives, investments and the evolving legislative framework. These developments position Greece as a hub for digital innovation and infrastructure in the Mediterranean region, and it is essential that any challenges be addressed in order for this potential to be fully realised.
Digital transformation strategy and economic initiatives
Over the past few years, the Greek government has developed a series of interconnected strategies to accelerate the nation's digital transformation and economic resilience. Central to these efforts has been the Digital Transformation Paper 2020-2025, which serves as a comprehensive roadmap outlining principles and projects aimed at enhancing digital innovation and transitioning industries to Industry 4.0. This strategy emphasises connectivity, smart cities, intelligent transportation and the industrial internet of things (IoT). To support these initiatives, the Greek government secured EUR18 billion from the EU's recovery fund, aiming to stimulate investments exceeding EUR60 billion in sectors such as green energy and digitisation. Complementing these efforts has been the Digital Transformation Program 2021-2027, which focuses on modernising public services, expanding broadband connectivity and developing digital skills, with an initial goal of fully digitising the country by 2025. This initiative has attracted substantial investments from major technology firms. Additionally, and further enhancing the digital infrastructure, the National Broadband Plan for 2021-27 has outlined the development of fixed high-capacity and 5G networks. Greece has been among the top five European countries in terms of efficiently completing a public auction of the radio spectrum for the deployment of 5G networks in 2020, reinforcing its commitment to advanced connectivity.
Trends and developments in digital infrastructure
The COVID-19 pandemic accelerated Greece's digitalisation efforts, particularly in public services. The government’s digital platform, Gov.gr, currently provides 2,171 digital services across 11 categories, enhancing interconnection and interoperability among public sector systems. The integration of technologies like cloud computing, business intelligence and machine learning has improved productivity and facilitated seamless interactions between citizens and the state.
The Greek information and communication technology (ICT) market is projected to reach EUR10.4 billion by 2029, accounting for 4.6% of GDP – a 35% increase compared to 2024 and an 80% rise since 2019 (see the Prospects of the ICT Sector in Greece study, conducted by Deloitte in collaboration with the Federation of Hellenic ICT Enterprises (SEPE)). This growth is driven by increased demand for cloud services, cybersecurity solutions and advanced telecommunications infrastructure, supported by government initiatives towards digital transformation.
Greece's strategic location as a nexus for subsea fibre optic cables connecting Europe to Africa, the Middle East and Asia enhances its role in global data infrastructure. The development of data centres, powered by renewable energy, underscores Greece's commitment to a sustainable technological future. As of 2023, the Greek data centre market is valued at approximately USD763.80 million, projected to reach around USD1.34 billion by 2029 (see Greece Data Center Market - Investment Analysis & Growth Opportunities 2024-2029, published on 16 April 2024). Major global players like Microsoft and Google have invested in the region, highlighting its potential.
With regard to the development of fibre optic networks, in 2022, representatives from major telecommunications operators presented their plans to the Prime Minister to invest in upgrading Greece's fibre infrastructure by 2027. Subsequently, in March 2024, the Minister of Digital Governance met with these providers to reaffirm their commitment and expedite project timelines. Over the past few years, operators such as Vodafone and OTE have notably accelerated their investments.
Finally, with regard to artificial intelligence, Greece is actively advancing its position and finalising its national AI strategy, reflecting a national commitment to becoming a key player in Europe's AI landscape. In February 2025, the launch of Pharos – an AI factory aimed at driving innovation across sectors such as health, environmental sustainability, culture and language – was announced. Supported by the Daedalus supercomputer, Pharos is designed to serve as a central hub for AI research and development.
Legislative developments and regulatory framework
Greece has proactively aligned its legislative framework with the EU’s to foster a robust digital environment. In 2020, the country transposed the European Electronic Communications Code (EECC) and enacted Law 4727/2020, establishing a comprehensive legal framework for electronic communications and digital services. Also, in the field of telecommunications infrastructure, Hellenic Telecommunications and Post Commission Decision 1063/02/30.01.2023 established the process for implementing very high-speed digital subscriber line (VDSL) vectoring technology, outlining the terms for the development of next-generation access networks and the obligations of providers regarding reporting and planning. The new Co-location Regulation has been issued, outlining the terms and procedures for infrastructure sharing among public electronic communications network operators, aiming to promote collaboration, reduce environmental impact and expedite the deployment of advanced communication networks. Additionally, the Regulation on Radio Spectrum Terms of Use has undergone several revisions, incorporating new provisions to ensure the effective utilisation of radio spectrum resources. The spectrum management system – interoperable with the electronic system for antenna constructions – has been completed, creating a fully digital framework for licensing radio spectrum rights and antenna constructions. Law 4961/2022 constitutes a first attempt at regulating emerging technologies such as AI, the IoT, unmanned aircraft systems, distributed ledger technologies, smart contracts and 3D printing, promoting the country's digital transformation. Further aligning with EU regulations, Greece implemented the Digital Services Act (DSA) by virtue of Law 5099/2024, and the Network and Information Systems Directive (NIS2) by virtue of Law 5160/2024, enhancing compliance, consumer protection, content moderation and cybersecurity standards. Finally, the country also adheres to the Cyber Resilience Act, which sets cybersecurity requirements for products with digital elements; the Digital Operational Resilience Act (DORA), enforced to strengthen the ICT resilience of financial entities; and the AI Act.
Challenges and strategic responses
Notwithstanding the substantial progress already achieved, the TMT sector continues to confront several challenges. SEPE has predicted that the annual gap between supply and demand will reach approximately 7,000–7,500 ICT specialists between 2023 and 2030 (see the Study on the sufficiency of ICT specialists in the Greek labour market, conducted by Deloitte in collaboration with SEPE), hindering digital transformation efforts. Addressing this gap will require investment in education and training to build a competent workforce. Moreover, navigating the evolving digital regulatory environment can be challenging for businesses, necessitating dedicated expert legal and compliance resources.
Additionally, despite efforts to harmonise regulations, fragmentation within the EU's digital single market persists, creating barriers for businesses operating across borders. More cohesive policies and engaging in cross-border collaborations could mitigate these challenges.
Finally, of the numerous projects outlined in the Digital Transformation Bible, only 5.4% were completed as of December 2023, with 54.1% being in progress (see the Telecommunications-Digital Upgrade pillar: Progress and challenges for the digital transformation of entrepreneurship, citizens' everyday life and the operation of the public sector study, conducted by Eurobank). Enhancing project management practices and ensuring regular progress evaluations is essential to meet digital transformation goals.