Data Centers in Portugal

Portugal – The Digital Gateway for Atlantic Data Traffic

Executive Summary

Portugal is a vital landing point for enterprises managing high-stakes data between Europe, the Americas, and Africa. Its coastal position and massive renewable energy grid allow businesses to secure reliable performance while meeting strict sustainability targets.

Portugal: At A Glance

Network & Connectivity Ecosystem

Portugal serves as a digital gateway due to its geographic position on the Atlantic coast. The infrastructure is purpose-built to handle massive throughput from international subsea cables.

Carrier Density & Carrier Neutrality: Carrier count: over 14, as of December 2025. The market features a healthy mix of local incumbents and international players, ensuring competitive pricing for transit.

Direct Cloud On-Ramps: Over 1, enabling access to 1 cloud regions, as of December 2025. Local facilities provide direct, low-latency links to AWS, reducing the need for backhauling traffic to Madrid.

Internet Exchange Points (IXPs): GIGAPIX is the primary exchange, facilitating efficient local traffic peering in Lisbon and Porto to minimize latency as of December 2025.

Bare Metal: Professional bare metal services are widely available through providers such as Latitude.sh and OVHcloud as of December 2025.

Power Analysis

Energy stability is a major selling point for the Portuguese market, particularly for firms with carbon-neutral requirements.

Average Cost Of Power: Based on current industrial trends, costs range between €0.15–0.17/kWh, as of December 2025. This pricing remains competitive within Western Europe, especially since roughly 88% of the mix comes from renewable sources.

Power Grid Reliability: The grid is well-engineered with redundant distribution networks and multi-substation support in major data center corridors as of December 2025. High investment in solar and wind has created a resilient supply chain that meets international uptime requirements.

Market Access, Business & Tax Climate

Portugal has transformed into a technology hub, attracting significant foreign investment in the digital economy.

Proximity To Key Business Districts: Data centers are concentrated near Lisbon and Porto, providing direct access to the Lisbon Tech Valley and major financial hubs where low-latency connectivity is essential.

Regional Market Reach: A presence here serves the domestic population and provides a gateway for the 500 million consumers in the European Union. It also acts as the primary hub for Lusophone markets in Africa and South America.

Tax Advantage For Data Centers: While there are no industry-specific breaks, the country offers a stable regulatory environment for international firms. The strategic location reduces long-haul transit costs for global traffic.

Natural Disaster Risk

The overall risk profile for Portugal is Low, with a score of 1.9/10 as of December 2025. While the overall hazard level is minimal, specific regional factors are monitored for coastal facilities.

Risk Rubric: Low (1.9/10)

• Coastal flood (4.6/10): This is a regional consideration for facilities located in immediate proximity to the Atlantic shoreline as of December 2025.
• Tsunami (4.3/10): Managed through specific site selection and elevation for coastal infrastructure as of December 2025.
• River Flood (3.8/10): Managed through modern drainage and site-specific mitigation as of December 2025.
• Earthquake (3.4/10): Infrastructure is built to Eurocode 8 standards to ensure structural integrity as of December 2025.

Other natural hazards, such as tropical cyclones, are considered minor or not applicable to the local geography as of December 2025.