Data Centers in Portugal

Portugal – The Atlantic Bridge for Global Interconnection

Executive Summary

Portugal serves as a critical landing point for global enterprises requiring high-speed data transfer between Europe, the Americas, and Africa. By leveraging a strategic coastal position and a massive renewable energy grid, businesses secure reliable performance while meeting aggressive sustainability targets.

Portugal: At A Glance

Network & Connectivity Ecosystem

Portugal functions 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 and transport.

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.

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 given that 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. 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 to 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 biggest financial benefit is the strategic location which 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 during seismic events, 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.