Data Centers in Portugal: the Market Boom and Where They Are Emerging
Portugal will attract over 12 billion euros in data center investment by 2030. Learn where they are emerging and what it means for the warehouse market.
Portugal has gone from emerging market to European data center hub in less than 3 years. With over 12 billion euros in committed investment through 2030 (ECO/Sapo, 2025), the country is attracting tech giants like Microsoft, Equinix, and Digital Realty.
For those who operate or own industrial warehouses in the Lisbon Metropolitan Area, this boom has direct consequences: rising land values, competition for space, and new opportunities.
Portugal as a Data Center Hub: the Numbers
The Portuguese data center market is currently worth 947 million dollars and is expected to reach 3.09 billion by 2030, growing at 21.84% per year. The estimated economic impact is 26.2 billion euros in GDP between 2025 and 2030 (Copenhagen Economics, 2025).
Key figures:
- Current capacity: 47.5 MW in colocation.
- Under development: over 310 MW under construction or planning.
- Total pipeline: over 1,800 MW with announced projects.
- European share: rising from 0.8% (2024) to 3.4% by 2030.
The artificial intelligence explosion has multiplied demand for processing capacity. 80% of planned investment in Portugal targets AI-intensive capacity, with thousands of NVIDIA GPUs being installed in Sines and the Lisbon Metropolitan Area.
The Big Projects: Who Is Investing
| Project | Location | Capacity | Investment | Status |
|---|---|---|---|---|
| Start Campus / Microsoft | Sines | 1,200 MW | 8.5 billion € | SIN01 operational; SIN02 from 2026 |
| Equinix LS1 + LS2 | Prior Velho (Loures) | 625 racks, 2,050 m2 | ~100 million € | Operational |
| Equinix LS3 | Prior Velho (Loures) | TBD | TBD | Planned 2027 |
| Merlin / Edged Energy | Castanheira do Ribatejo | 180 MW (expandable to 300 MW) | Undisclosed | Construction started Oct 2024 |
| AtlasEdge | Carnaxide (Oeiras) | 30 MW (3 phases) | 292 million $ (green financing) | Under construction |
Microsoft announced over 10 billion dollars in AI infrastructure investment in Portugal (Euronews, 2025), the largest data center deal in Portugal's history. The project in Sines, with Start Campus, will deploy 12,600 next-generation NVIDIA GPUs.
If you followed our article on the logistics boom in Loures, you know the municipality was already a pole of attraction. Data centers reinforce this trend.
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Why Portugal? The Competitive Advantages
Portugal brings together a rare set of advantages in Europe:
- Renewable energy: 71% of electricity consumption in 2024 came from renewable sources (hydro, wind, solar, biomass).
- Electricity cost: ~€0.11/kWh for industrial consumers, versus €0.27/kWh in Ireland and €0.18/kWh in Germany.
- Submarine cables: 10 intercontinental cables arrive in the Lisbon area, including EllaLink (direct link to Brazil/Africa), Equiano (Google), and 2Africa.
- Temperate climate: mild temperatures reduce cooling costs compared to northern Europe.
- Talent: ~230,000 ICT specialists and a high rate of STEM graduates.
Industrial electricity in Portugal costs about 60% less than in Ireland, Europe's largest data center hub. This difference is one of the main factors attracting investors to Portugal.
Loures and the Lisbon Metropolitan Area: at the Center of the Action
The concentration of projects in the Lisbon Metropolitan Area is remarkable, with Loures standing out:
Equinix chose Prior Velho (Loures) for its Lisbon campus: data centers LS1 and LS2 are already operational, with over 2,000 interconnections, over 100 enterprise customers, 45 networks, and 4 internet exchanges. LS3 is planned for 2027 (Equinix, 2024).
20 minutes away, in Castanheira do Ribatejo (Vila Franca de Xira), Merlin Properties and Edged Energy are building a 180 MW AI campus (expandable to 300 MW), with the first phase operational by 2027.
In Carnaxide (Oeiras), AtlasEdge is developing 30 MW across three phases, with 292 million dollars in green financing.
Why the Lisbon Metropolitan Area is the preferred location:
- Submarine cable proximity: Carcavelos (Cascais) is the landing point for several cables; fiber optics quickly connect to the Lisbon area.
- Power grid: REN's high-voltage substations serve the entire Lisbon area with competitive industrial tariffs.
- Industrial land: Loures, Vila Franca de Xira, and Seixal offer larger plots than central Lisbon.
Economic Impact: Jobs and Revenue
The sector currently employs about 1,700 jobs (direct, indirect, and induced). Projections point to 13,400 to 48,400 jobs by 2030, depending on the investment scenario (Copenhagen Economics, 2025).
The Start Campus project in Sines alone foresees 1,200 direct and 9,000 indirect jobs.
The multiplier effect extends to construction, maintenance, security, electrical installation, and support service companies, many located in the Lisbon Metropolitan Area.
Data centers need suppliers for civil construction, electrical installations, physical security, HVAC maintenance, and industrial cleaning. Local companies in the Lisbon area are well positioned to capture this demand.
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Warehouses and Data Centers: a Growing Relationship
The data center boom has a direct impact on the industrial warehouse market:
Competition for land: Merlin Properties, traditionally a logistics REIT, is redirecting land use toward data centers at Castanheira do Ribatejo. Prologis, the world's largest logistics REIT, has already converted 29 warehouses into data centers globally.
Warehouse conversion: it is technically possible, but with significant limitations. The requirements are very different:
| Requirement | Data Center | Typical Warehouse |
|---|---|---|
| Floor load | 12 kPa minimum (UPS: up to 24 kPa) | 1.2 to 2.4 kPa |
| Power supply | Dual redundant, generators, UPS | Single feed |
| Cooling | Dedicated systems (PUE below 1.3) | None/basic |
| Security | Biometric, perimeter, 24/7 | Basic |
| Connectivity | Multiple dark fiber routes | None |
Conversion is not the norm, but the appreciation of industrial land in zones near data centers is real. Those who own industrial properties in Loures or Vila Franca de Xira are in a privileged position.
The Future: Portugal on the Route of Tech Giants
The outlook for the coming years is clear:
- New submarine cables under construction will strengthen Portugal's connectivity (Google Cloud, Medusa, Nuvem).
- AI as the engine: 80% of planned investment targets AI capacity, not traditional colocation.
- European positioning: Portugal is positioning itself alongside the FLAP-D markets (Frankfurt, London, Amsterdam, Paris, Dublin).
- Market share: rising from 0.8% to 3.4% of Western European data center energy consumption by 2030.
For those analyzing the industrial warehouse market in Loures, data center growth is an additional factor driving up the zone's value.
Data centers look for land with access to high-voltage power and fiber optics. Industrial zones in Loures and Vila Franca de Xira, which already have this infrastructure, are among the most valued in the Lisbon Metropolitan Area.
Frequently Asked Questions
Over 12 billion euros in committed investment through 2030. The largest project is Start Campus in Sines (8.5 billion euros, 1,200 MW), with Microsoft as the main client.
The main hubs are Sines (Start Campus/Microsoft), Prior Velho in Loures (Equinix), Castanheira do Ribatejo in Vila Franca de Xira (Merlin/Edged Energy), and Carnaxide in Oeiras (AtlasEdge).
Portugal offers industrial electricity at 0.11 euros per kWh (60% cheaper than Ireland), 71% renewable energy, 10 intercontinental submarine cables, a temperate climate, and a qualified ICT workforce.
Data centers compete for industrial land in the Lisbon Metropolitan Area, driving up values in zones like Loures and Vila Franca de Xira. Prologis, the world's largest logistics REIT, has already converted 29 warehouses into data centers globally.
Technically yes, but with limitations. Data centers require 5 to 10 times higher floor load, redundant power supply, dedicated cooling systems, and fiber optic connectivity. Conversion is possible but rarely the preferred option.
The sector currently employs about 1,700 people. Projections point to 13,400 to 48,400 jobs by 2030, including direct, indirect, and induced jobs in construction, maintenance, and support services.
Yes. Equinix operates two data centers (LS1 and LS2) in Prior Velho, municipality of Loures, with over 2,000 interconnections and 100 enterprise customers. A third (LS3) is planned for 2027.
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