Portugal is rapidly emerging as a premier destination for digital infrastructure in Europe, driven by a surge in data center development and the transformative impact of artificial intelligence (AI). A recent study by Copenhagen Economics highlights the substantial economic potential of the data center sector in Portugal, projecting that it could contribute up to €26 billion to the national GDP by 2030 and support approximately 50,000 full-time jobs annually.

At the forefront of this digital expansion is Start Campus, whose flagship SINES DC project exemplifies Portugal’s strengths in this sector. With a fully secured grid capacity of 1.2 GW and the first building, SIN01, already operational, Start Campus is set to be a major driver of the country’s digital economy. The SINES DC represents one of the largest private investments in Portugal’s tech infrastructure, emphasizing sustainability with its reliance on renewable energy and innovative cooling solutions that leverage Portugal’s proximity to the sea. This approach not only reduces operational costs, but also minimizes freshwater consumption, aligning with global sustainability goals.

Portugal’s competitive advantages extend beyond its natural resources. Below are just a few benefits of the country’s strategic location:

  • Electricity costs approximately 30% below the European average
  • Renewable sources account for 87.5% of total net electricity generation
  • 25% of the world’s submarine cables pass through Portuguese territory.
  • Portugal boasts 92% fiber optic coverage, ranking it third in the European Union for network quality

These features make Portugal an ideal place for the low-latency connectivity essential for cloud computing, big data, and AI applications, while being sustainable and cost-effective.

The socio-economic impact of the data center industry is already clear. Between 2022 and 2024, data centers contributed €311 million to Portugal’s GDP and supported around 1,700 jobs annually. Looking ahead, the continued growth of Portugal’s data center market hinges on supportive public policies. Key areas for action include ensuring predictable access to electrical grids and critical components, streamlining licensing for technological and energy infrastructure, and promoting AI adoption across both public and private sectors. These measures will be vital to maintaining Portugal’s competitive edge amid intense international competition for digital infrastructure investments.

Demand for AI-driven computing capacity is expected to account for around 70% of total computing by the end of the decade, necessitating modern, energy-efficient, and scalable data centers. Portugal’s unique combination of strategic connectivity, clean and affordable energy, a skilled workforce, and favorable policy environment positions it as an ideal location for digital infrastructure development. Start Campus’s pioneering efforts with SINES DC highlight the country’s potential to become a leading European hub for AI-ready data centers, driving significant economic growth and technological advancement through 2030 and beyond.