Portugal is expected to attract more than €12 billion in data center investments over the next five years, with 80% of the funds directed toward AI-driven infrastructure, according to PortugalDC president Luís Pedro Duarte.
The surge in investment is driven by the increasing computing power demands of artificial intelligence and the need for advanced cooling technologies like liquid cooling. Portugal's green energy production, low electricity costs, strong connectivity, and skilled workforce make it an attractive hub for data centers.
However, ongoing political instability—following the collapse of Luís Montenegro’s government—could deter foreign investors. PortugalDC warns that uncertainty could slow investment momentum, particularly after the recent suspension of corporate tax reduction plans.
Several major data center projects are already in progress, including Equinix’s Lisbon data centers, Atlas Edge in Carnaxide, Merlin Properties in Castanheira do Ribatejo, and Voltekko in Alcochete. Additionally, the Start Campus project in Sines, initially valued at €3.5 billion, has now been revised up to €8.5 billion, making it one of the largest investments in the sector.
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