Portugal Seeks Productive, Efficient Data Centres to Boost Economic Growth
Portugal's Strategy for Attracting Data Centres
Focus on Economic Benefits and Productivity
LISBON, July 14 (Reuters) - Portugal is keen to attract data centres that generate economic benefits and boost productivity and not become a dumping ground for power-hungry projects with limited returns for the country, Infrastructure Minister Miguel Pinto Luz said on Tuesday.
Emergence as a European Data-Centre Hub
• The country is emerging as a key European data-centre hub, with more than 2.6 gigawatts under development, led by the 1.2-GW Start Campus project in Sines, backed by Microsoft AI infrastructure investments, with the pipeline expected to grow substantially.
Government's Stance on Data Centre Investments
• As opposition to data centres grows in parts of the world, particularly in the United States, the minister said Portugal will only support such investments if they deliver measurable productivity gains and real benefits for the economy.
Concerns Over Energy Consumption
• Pinto Luz said at a conference hosted by online outlet ECO that data centres consume "absolutely astronomical" amounts of energy and sometimes generate few positive spillovers. "We want to attract investment, but we do not want to become Europe's dumping ground," he said.
Portugal's Competitive Advantages
Abundant Renewable Energy Resources
• Portugal's appeal for data-centre investors is underpinned by abundant wind, solar and hydropower, providing access to highly competitive renewable electricity to power energy-intensive projects.
Low Wholesale Power Prices
• Wholesale power prices in the Iberian MIBEL market it shares with Spain averaged just above 40 euros/MWh in the first quarter of 2026, compared with more than 90 euros/MWh in most European markets, according to Portuguese renewable energy association APREN.
Strategic Atlantic Coastline for Connectivity
• Portugal's Atlantic coastline positions it as a prime hub for subsea cables connecting Europe, Africa and the Americas and forming the backbone of the World Wide Web, helping to turn the country into a magnet for AI-driven data centers.
Reporting Credits
(Reporting by Sergio Goncalves; Editing by Mark Porter)
