Expanding Data Centres in Portugal: A Strategic Market in the European Landscape

The Cushman & Wakefield report, which monitors 32 data centre markets in the EMEA region, reveals that operational capacity across the region grew by 9% year-on-year and total market size by 16%.

Lisbon's strategic position, connected to major submarine cables, reinforces its role in global network connectivity.

At the end of 2024, a total of 21 GW of data centre capacity in the EMEA region was operational, under construction or in the planning phase, with operators increasingly looking beyond traditional markets to meet demand, reveals Cushman & Wakefield in a new study on this sector.

According to the analysis carried out by Cushman & Wakefield, operational capacity grew by 9% year-on-year and the pipeline (under construction and in planning) by 16% over the same period. The study monitors the 32 main data centre markets in the EMEA region, comparing their current maturity and growth potential over the next decade.

In Lisbon, the indicators show that the data centre market is still in an early stage in terms of real capacity. However, pipeline capacity is expanding rapidly. Although active capacity currently stands at 15MW, AtlasEdge (9.3MW) and Merlin Properties (180MW) have data centres under construction. Additionally, in the "early stage" (excluded from the analysis), Start Campus in Sines has 1.2 GW. Operators such as Altice Portugal, Equinix, and NOS Sistemas lead in the capital.

"Portugal has land in strategic industrial areas, ideal for new data centre projects, and robust renewable energy production capacity. Currently, more than 70% of the country's electricity is generated from renewable sources, positioning us as leaders in the production of this type of energy. However, we must take into account that not all lands have dark fibre backbone coverage, which means some locations are not yet fully prepared for these digital factories of the future," comments Sérgio Nunes, Head of Industrial, Logistics & Land, Portugal.

Lisbon's strategic position, close to major submarine cables, reinforces its role in the connectivity of a global network. The future Google Cloud cable, scheduled to be operational in 2026, and the 2Africa cables both land near Lisbon.

The Start Campus project in Sines, valued at 8.5 billion euros, aims to become the largest colocation site (leasing to different users) in Europe, with a capacity of 1.2 GW powered by renewable energy, for which the company has obtained all necessary authorizations. The robust data centre will leverage thermoelectric energy and other renewable sources for its operation.

While the consolidated FLAP-D markets (Frankfurt, London, Amsterdam, Paris, and Dublin) continue to dominate both in terms of operational capacity and total size (with Milan joining them as a potent region), operators are also moving to emerging markets like Helsinki. The Finnish capital recorded significant growth last year, reaching a total capacity of 594 MW by the end of 2024, putting it ahead of other Nordic markets.

Andrew Fray, EMEA Data Centre Director at Cushman & Wakefield, stated: "Most data centre markets continue to face significant challenges, including limited land availability, power constraints, and stringent sustainability regulations, impacting costs, timelines, and significant investment uncertainty for both operators and investors."

"Ironically, despite being characterized as a threat in some sectors, the emergence of DeepSeek could offer a solution for some of the energy needs associated with data centres. By reducing the energy required for AI operations, it could contribute to more sustainable and cost-effective data centre infrastructures. Some development lines may be re-evaluated, but the general outlook is that competition in the AI space was inevitable and fundamentally good for the market. It is notable that DeepSeek has become an important topic so quickly, despite having no background and facing data security concerns, but its presence undoubtedly contributes to the market and will drive more innovation," reinforces Andrew Fray.

The study concludes that, regardless of the origin of demand, AI data processing takes place in data centres. The most "potent" markets in the region represent nearly 6 GW of pipeline supply fueling broad market growth across the region, and construction activity is expected to double current capacities. Sustainability efforts continue to accelerate, with operators adopting green hydrogen, waste heat utilization, and renewable energy mechanisms, both directly and indirectly. Meanwhile, emerging markets and remote campuses located outside the consolidated metropolitan areas are also poised to completely reshape the data centre landscape.

Market Maturity: Cushman & Wakefield classifies urban data centre markets in the EMEA region as powerhouses (900MW+), consolidated (300-900MW), developing (150-300MW), and emerging (<150MW).

Powerhouses: London, Frankfurt, Dublin, Paris, Amsterdam, and Milan represent over 47% of operational data centre capacity (4.4 GW) in the EMEA region and over 50% of capacities under construction and planned (5.8 GW) combined.

Consolidated: Helsinki, Madrid, Abu Dhabi, Dubai, Oslo, Johannesburg, Cardiff-Newport, and Berlin represent about 13% of the total operational capacity in the EMEA region. Together, they have 1,244MW of active capacity and are on track to more than double their size if the development reserve (2,180MW) is built in the coming years. Many operators are expanding their presence or considering entering these markets due to strategic locations and available infrastructure for data centre operations. Berlin, for instance, offers a significant alternative to Frankfurt.

Developing: Stockholm, Zurich, Warsaw, Tel Aviv, Copenhagen, Reykjavik, and Cape Town represent 8.3% of operational capacity (785MW) in the EMEA region, up from 7.7% in the first half of 2024, and are expected to increase their share. Together, they have a reserve of 815MW.

Emerging: Emerging markets are in an early stage of development, but many data centre operators find them attractive due to favourable business conditions, increasing consumer demand, suitable land, power availability, fibre connectivity, and the establishment of a new cloud computing region. Vienna, Lagos, Barcelona, Riyadh, Brussels, Munich, Istanbul, Zaragoza, Marseille, Athens, and Lisbon together represent less than 6.5% of total operational capacity (608 MW) in the EMEA region.