Portugal Data Center Market - Investment Analysis & Growth Opportunities 2026-2031

The Portugal data center market is expected to grow at a CAGR of 20% from 2025 to 2031.

MARKET INVESTMENT NEWS BY AREA

• The Madeira Free Trade Zone (FTZ) is a designated special economic area established to attract investment and boost employment opportunities for the island’s residents. One of its key incentives is the significantly reduced corporate income tax rate of just 5% for the licensed companies operating within the zone. In addition, Azores, a free trade zone (FTZ) of Portugal, provides a favorable corporate tax rate of 4% or less for businesses.
• The Portugal Data Center by FF Ventures, a renewable energy provider, will span over a white floor area of 1.2 million square feet on fully built.
• AtlasEdge data centers will offer white floor area of 72,000 sq. ft. and 45,000 sq. ft. from its two planned data centers, LIS002 & LIS003. Its LIS001 data center is operational with white floor area of 22,950 sq. ft.

MARKET INVESTMENT NEWS BY POWER CAPACITY

• The Portuguese Renewable Energy Association (APREN) expects that Portugal will be able to generate enough electricity from renewable sources alone to meet the entire annual electricity demand of mainland Portugal by 2040. It is a non profit industry association founded in 1988 that coordinates, represents, and defends the common interests of renewable energy producers and stakeholders in Portugal’s electricity sector.
• In July 2025, the Portugal government announced plans to invest $470 million to improve its grid management capabilities and increase its battery energy storage system (BESS) capacity. The National Energy and Climate Plan (PNEC 2030) aims for 1.5 GW of battery storage by 2030 to stabilize the grid and ensure energy security.
• As of December 2025, colocation operators in Portugal accounted for over 67.1 MW of existing core and shell power capacity, with an additional 1,930 MW in the pipeline. Major players contributing to this expansion include Start Campus, FF Ventures, EDC One, MERLIN Properties & Edged, and other key operators.

PORTUGAL DATA CENTER MARKET - KEY HIGHLIGHTS

• Portugal's data center market is experiencing significant growth, moving away from traditional FLAP (France, London, Amsterdam, and Paris) markets to campuses powered by renewable energy and connected to the Atlantic. The market is expected to reach a value of $3.89 billion by 2031, making Portugal an important player in European digital infrastructure strategies.
• As of December 2025, colocation operators in Portugal accounted for over 67.1 MW of existing core and shell power capacity, with an additional 1,930 MW in the pipeline. Major players contributing to this expansion include Start Campus, FF Ventures, EDC One, MERLIN Properties & Edged, and other key operators.
• Lisbon is the most preferred data center location in Portugal, attracting substantial investments from new colocation providers such as Start Campus, FF Ventures, EDC One, MERLIN Properties & Edged, among others. Other Cities such as Sines and Pego also hold importance as centers of data infrastructure and technology advances in the country.
• The cost of constructing a data center in Portugal generally ranges from $9 million to $10 million per megawatt (MW). This makes it a cost-effective alternative compared to other locations in Europe, such as the Netherlands, France, Germany, the UK, and Switzerland. However, costs are expected to increase year over year due to inflation, rising interest rates, and the increasing price of raw materials.
• Portugal is experiencing growth in the development of Open Compute Project (OCP) ready data centers. An OCP-ready data center is a facility that follows the design and operational guidelines established by the OCP. This global initiative, launched by Facebook, aims to rethink hardware and optimize it for efficiency, scalability, and compatibility.

WHY SHOULD YOU BUY THIS RESEARCH?

• Market size available in the investment, area, power capacity, and Portugal colocation market revenue.
• An assessment of the data center investment in Portugal by colocation, hyperscale, and enterprise operators.
• Data center investments in the area (square feet) and power capacity (MW) across the country.
• A detailed study of the existing Portugal data center market landscape, an in-depth industry analysis, and insightful predictions about the Portugal data center market size during the forecast period.
• Snapshot of existing and upcoming third-party data center facilities in Portugal
  • Facilities Covered (Existing): 14
  • Facilities Identified (Upcoming): 11
  • Coverage: 7+ Cities
  • Existing vs. Upcoming (Data Center Area)
  • Existing vs. Upcoming (IT Load Capacity)
• Data center colocation market in Portugal
  • Colocation Market Revenue & Forecast (2022-2031)
  • Retail & Wholesale Colocation Revenue (2022-2031)
  • Retail & Wholesale Colocation Pricing
• Portugal data center landscape market investments are classified into IT, power, cooling, and general construction services with sizing and forecast.
• A comprehensive analysis of the latest trends, growth rate, potential opportunities, growth restraints, and prospects for the industry.
• Business overview and product offerings of prominent IT infrastructure providers, construction contractors, support infrastructure providers, and investors operating in the industry.
• A transparent research methodology and the analysis of the demand and supply aspect of the market.

PORTUGAL DATA CENTER MARKET VENDOR LANDSCAPE

• In the current landscape of colocation investors, several established companies play a significant role. Notable players Altice Portugal, AR Telecom, Equinix, NOS Sistemas, REN and Start Campus among others.
• In April 2025, Start Campus inaugurated its first SINES Campus building, SIN01, and announced plans to begin construction on its second data center facility, SIN02, in June 2025. The SIN02-06 buildings represented the second phase of the project, which will include additional buildings that will be completed in phases over the next five years. When fully developed, over $10 billion will be invested in the Start Campus data center project in Sines.
• The market has witnessed several new players emerge over the past few years. The notable entrants include AtlasEdge, Digital Realty, EDC One, Edged, FF Ventures, Quetta Data Centers and Templus.
• In September 2025, EDC One announced plans to invest $8.2 billion for a data center in Abrantes, Portugal. The data center is to be developed in three phases and is expected to become operational in the second quarter of 2028. Also, the Abrantes City Council approved a series of tax exemptions worth $19.1 million to support the construction of a data center in the Pego industrial zone.
• Hyperscalers are accelerating investment in Portugal, positioning the country as a key regional hub for cloud and AI infrastructure in Europe. In November 2025, Microsoft announced a $10 billion investment plan aimed at AI-focused data centers in Sines, Portugal.
• Mergers and acquisitions are key investment activities pursued by operators to either enter a market or achieve a greater market share. For instance, in March 2026, Digital Realty announced its entry into the market through the acquisition of a data center facility in Lisbon with an investment of around $8.3 million. The data center is currently under development with power capacity of 2.4 MW, likely to become operational by 2027.

EXISTING VS. UPCOMING DATA CENTERS

• Existing Facilities in the region (Area and Power Capacity)
  • Lisbon
  • Other Cities
• List of Upcoming Facilities in the region (Area and Power Capacity)
  • Lisbon
  • Other Cities

IT Infrastructure Providers

• Cisco
• Dell Technologies
• Everpure
• Fujitsu
• Hewlett Packard Enterprise
• IBM
• Inspur
• Lenovo
• NEC Corporation
• NVIDIA
• NetApp
• Oracle

Data Center Construction Contractors & Sub-Contractors

• ARSMAGNA
• Arcadis
• ARX Portugal Arquitectos
• ACA
• Afaconsult
• CAP DC
• Conduril
• DST Group
• Gleeds
• J.AGOSTINHO SILVA ENGENHARIA
• O/M
• Proef
• Quark
• SOMA PARALELA

Support Infrastructure Providers

• ABB
• Caterpillar
• Daikin Applied
• Ebm-Papst
• Johnson Controls
• Legrand
• Schneider Electric
• Siemens

Data Center Investors

• Altice Portugal
• AR Telecom
• Equinix
• NOS Sistemas
• REN
• Start Campus

New Entrants

• AtlasEdge
• Digital Realty
• EDC One
• Edged
• FF Ventures
• Quetta Data Centers
• Templus

The segmentation includes:

• IT Infrastructure
  • Servers
  • Storage Systems
  • Network Infrastructure
• Electrical Infrastructure
  • UPS Systems
  • Generators
  • Transfer Switches & Switchgears
  • PDUs
  • Other Electrical Infrastructure
• Mechanical Infrastructure
  • Cooling Systems
  • Rack Cabinets
  • Other Mechanical Infrastructure
• Cooling Systems
  • CRAC & CRAH Units
  • Chiller Units
  • Cooling Towers, Condensers & Dry Coolers
  • Other Cooling Units
• General Construction
  • Core & Shell Development
  • Installation & Commissioning Services
  • Engineering & Building Design
  • Fire Detection & Suppression Systems
  • Physical Security
  • Data Center Infrastructure Management (DCIM)
• Tier Standard
  • Tier I & Tier II
  • Tier III
  • Tier IV

KEY QUESTIONS ANSWERED

1. How much MW of power capacity will be added across Portugal in 2031?
2. How big is the Portugal data center market?
3. What factors are driving the Portugal data center market?