Data Centers in Portugal

Portugal – Strategic Atlantic Gateway to Europe

Portugal offers a stable and increasingly strategic location for digital infrastructure, connecting Europe, the Americas, and Africa. Its significant investment in renewable energy and growing connectivity ecosystem make it a compelling choice for businesses prioritizing sustainability and reliable access to Western European markets. This market is ideal for disaster recovery sites, content delivery networks, and edge deployments serving Iberia and transatlantic routes.

Portugal: At A Glance

Network & Connectivity Ecosystem

Portugal's connectivity is centered around major metro areas like Lisbon and Porto, with significant international capacity from multiple subsea cable landing stations.

Carrier Density & Carrier Neutrality: The market features over 14 network carriers operating within 11 data centers, as of September 2025. Carrier-neutral facilities provide diverse options for creating resilient network architectures.

Direct Cloud On-Ramps: With over 1 on-ramp available, Portugal provides dedicated, low-latency connections to major cloud providers. This includes direct access to AWS, with one cloud region available locally, as of September 2025. Private connectivity to other cloud hubs like Madrid is readily available.

Internet Exchange Points (IXPs): The primary exchange is GigaPix, which facilitates efficient traffic exchange between major carriers, content providers, and enterprises within Portugal. This reduces latency for domestic users and improves overall network performance.

Bare Metal: On-demand bare metal servers are available from multiple providers. Options include services from providers like Hivelocity and Latitude.sh, allowing for rapid deployment of high-performance computing resources.

Power Analysis

Portugal stands out for its commitment to renewable energy, which powers a reliable and increasingly green digital economy.

Average Cost Of Power: Industrial power rates typically range from €0.14 to €0.17/kWh, as of September 2025. This competitive pricing, combined with a high proportion of green energy, helps control long-term operational expenses.

Power Grid Reliability: The national power grid is stable and well-engineered, particularly in the commercial hubs where data centers are located. The energy mix is dominated by renewables (~88%) and fossil fuels (~12%), with no nuclear power, as of September 2025.

Market Access, Business & Tax Climate

Portugal offers a secure and business-friendly environment within the European Union, serving as a strategic point of presence for multiple continents.

Proximity To Key Business Districts: Data centers are concentrated near Lisbon and Porto, providing low-latency connectivity to the country's primary financial, technology, and industrial centers. The port of Sines is also emerging as a key hub for new submarine cable systems.

Regional Market Reach: Portugal's location on the Atlantic coast makes it an effective gateway for serving markets in Western Europe, North Africa, and the Americas. Submarine cable connectivity is a key advantage for companies with transatlantic data traffic.

Tax Advantage For Data Centers: The country currently offers no specific tax incentives for data center development or operation. Businesses benefit from a stable and predictable tax structure within the EU framework.

Natural Disaster Risk

Portugal has a very low natural disaster risk profile, with an INFORM Risk score of 1.9 out of 10, as of September 2025. This ensures high operational uptime and minimizes threats to physical infrastructure.

While the overall risk is low, key considerations for site selection include:

• Coastal Flood: The highest individual risk factor, primarily affecting low-lying coastal areas.
• Tsunami: A consideration for facilities located directly on the Atlantic coast.
• River Flood: A moderate risk in specific regions near major river systems.
• Earthquake: A low but present risk, reflecting the country's seismic characteristics.