Portugal is making steady progress toward establishing itself as one of Europe’s leading digital and infrastructure hubs. A recent report by Copenhagen Economics, in collaboration with Start Campus, estimates that the data center sector could contribute up to €26.2 billion to the national GDP by 2030 and create as many as 50,000 jobs annually. These figures confirm that Portugal is leveraging its strategic location, renewable energy resources, and technological talent to position itself as a hub for artificial intelligence (AI) and digital innovation.
AI: Driving Growth and Transformation
The report emphasizes that by the end of this decade, 70% of computing capacity will be dedicated to AI applications, necessitating modern, sustainable, and resilient infrastructures. The rising demand for AI, big data, and cloud computing services is accelerating the development of large-scale data centers across the country.
An excellent example is the SINES DC mega-project by Start Campus, which boasts a secured network connection capacity of 1.2 GW—twice what many similar projects in Europe have. The campus’s first facility, SIN01, is already operational and represents one of the largest private investments in technological infrastructure in Portugal. Utilizing advanced cooling technologies that leverage proximity to the Atlantic Ocean, the campus combines sustainability, energy efficiency, and scale.
Strategic Advantages: Clean Energy, Connectivity, and Talent
Portugal has distinguished itself through several key factors:
- Electricity costs are 30% lower than the European average, a critical advantage for energy-intensive sectors.
- 87.5% of the country’s net electricity generation comes from renewable sources.
- There is a 92% fiber optic coverage, ranking third in network quality within the EU.
- About 25% of the world’s submarine cables pass through Portugal, ensuring low latency and global connectivity.
- The country has a solid base of 230,000 ICT specialists and a high proportion of STEM graduates.
Robert Dunn, CEO of Start Campus, stated, “Portugal has all the conditions to become the leading digital and AI hub in Europe: strategic connectivity, clean energy, and a highly qualified workforce.”
Policy and Regulation: The Unmet Challenge
Despite its potential, experts warn that this growth is not guaranteed. The report highlights that maximizing opportunities requires supportive public policies. The five priority action areas include:
- Predictable access to the electrical grid and critical components such as chips.
- Simplification of licensing procedures for technological and energy infrastructures.
- Specific measures to attract investment in data centers.
- Encouragement of digitalization and AI adoption in both public and private sectors.
- Development of digital skills through training and education.
Dr. Bruno Basalisco, a director at Copenhagen Economics, noted, “The country is already reaping tangible economic benefits from its data centers, but these are only a fraction of the future potential.”
An Expanding Ecosystem
Between 2022 and 2024, data centers contributed €311 million to Portugal’s GDP and supported 1,700 jobs annually, attracting talent and reinforcing territorial cohesion. They also pave the way for new educational opportunities and the creation of a robust tech ecosystem impacting regions beyond Lisbon and Porto.
With these conditions and a clear focus on sustainability, Portugal is poised to lead the new generation of European digital infrastructure—energy-efficient, interconnected, secure, and AI-ready.
The coming decade will be pivotal in defining Portugal’s role in the global digital economy. If regulatory conditions align, the country will not only host data but become a driving force of innovation, economic growth, and technological transformation.
source: Start Campus report