Finance
Portugal's EDP moves to supply data centre boom in Iberia, CEO says
Published by Global Banking & Finance Review®
Posted on February 26, 2026
3 min readLast updated: February 26, 2026
Tags:infrastructure
Quick Summary
EDP is positioning to supply Iberia’s accelerating data center buildout, supported by low power prices and stable returns. A new partnership with Start Campus will deliver renewable energy to its 1.2 GW Sines campus.
EDP targets Iberia data centre surge with low-cost power, CEO says
By Sergio Goncalves
EDP’s Strategy for Iberia’s Data Centre Demand
LISBON, Feb 26 (Reuters) - Portugal's largest utility EDP is moving to supply the boom in data centre projects in Iberia, attracted by electricity prices that are set to remain low compared with much of Europe, CEO Miguel Stilwell de Andrade said on Thursday. He said over 18 gigawatts of data centre projects in development or in the pipeline in Portugal and Spain "will support the strong electricity demand already in Iberia," driven by structural, not temporary, factors.
"EDP is obviously engaging with many of these projects," the CEO said at a conference with analysts.
"Iberia has a distinctive advantage, which we expect to benefit from - structurally affordable power prices," he said, adding that this is crucial for these projects.
Partnerships to Supply Renewable Power
On Wednesday, EDP signed a partnership to supply renewable power to the 1.2-GW data centre that Start Campus — a consortium of Britain's Pioneer Point Partners and U.S. fund Davidson Kempner - is developing in Sines, 150 kilometres (93 miles) south of Lisbon.
Iberian Electricity Demand Trends
Electricity demand rose 3.6% in Portugal and 2.8% in Spain in 2025, outperforming most EU markets, where average growth was just 0.4%, Stilwell de Andrade said.
EDP Sees 2% Annual Demand Growth Through 2030
EDP is projecting 2% annual growth in Iberian demand through 2030, supported by "electrification of transport, industry, beyond data centres," Stilwell de Andrade said.
Industrial Power ~17% Below EU Average
Price Advantage Versus EU Average
Due to the large deployment of wind and solar parks in Iberia, the EDP CEO said electricity prices for industrial customers in the region are around 17% below the EU average.
Tariff Debt Fully Repaid by 2028
Regulatory and Tariff Outlook
Portugal and Spain have "several structural factors that will help keep electricity prices low", he said, including the full repayment by 2028 of the electricity systems tariff debt, which has weighed on consumer bills.
Tariff Structure Cost Reductions Ahead
"That means there will be significant cost reductions in the tariff structure going forward," he said.
Pre-Tax Returns on Networks: Portugal and Spain
New regulatory frameworks guarantee pre-tax returns of 6.7% on electricity network investments in Portugal through 2029, and 6.58% in Spain through 2031, "giving EDP clarity and stability for the next investment cycle," Stilwell de Andrade said.
(Reporting by Sergio Goncalves in Lisbon; Editing by Bill Berkrot)
Key Takeaways
- •EDP aims to capitalize on Iberia’s expanding data center pipeline, citing structurally lower power prices.
- •Over 18 GW of Portugal–Spain data center projects are in development or the pipeline, boosting regional electricity demand.
- •EDP signed a deal to supply renewable power to Start Campus’s 1.2 GW Sines data center.
- •Iberian electricity prices for industrial users are around 17% below the EU average, aiding competitiveness.
- •Stable regulated returns in Portugal and Spain support EDP’s next investment cycle in networks.
Frequently Asked Questions about Portugal's EDP moves to supply data centre boom in Iberia, CEO says
1What is the main topic?
EDP plans to supply the fast-growing data center market in Iberia, leveraging lower regional power prices and stable network returns, including a partnership to power the 1.2 GW Sines campus.
2Why is Iberia attractive for data centers?
Large-scale wind and solar buildout, competitive electricity prices and strong grid development make Portugal and Spain cost-effective locations for hyperscale data centers.
3What deal did EDP announce?
EDP signed a partnership to deliver renewable energy to Start Campus’s data center project in Sines, positioning itself as a preferred long-term green power partner.
