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Data Centers in Portugal

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Portugal – Gateway to Iberia & Atlantic Cable Routes

Executive Summary

Portugal is a strategic market for businesses targeting the Iberian Peninsula and serves as a critical landing point for subsea cables connecting Europe, Africa, and the Americas. The country’s commitment to renewable energy and exceptionally low disaster risk profile make it a reliable and sustainable choice for deploying resilient digital infrastructure. This ensures high uptime and supports corporate environmental, social, and governance goals.

Portugal: At A Glance

FactorRating / DataNotes
Global Connectivity GradeBSolid regional access, but fewer direct long-haul routes than primary European hubs.
Direct Cloud On-RampsOver 1 — as of September 2025Direct access is available, with private connectivity options to other major cloud hubs.
Power Cost€0.14 - €0.18/kWh, as of September 2025Favorable rates are driven by an energy mix high in renewables.
Disaster RiskLow (1.9/10), as of September 2025One of the lowest overall natural disaster risk profiles in Western Europe.
Tax IncentivesNoPortugal does not offer specific incentives for data center development or investment.
Sales Tax23% VAT, as of September 2025The standard Value Added Tax rate applies to equipment and services.

Network & Connectivity Ecosystem

Portugal's connectivity ecosystem is defined by its strategic position as a landing hub for numerous transatlantic subsea cables. This provides low-latency routes to North America, South America, and Africa.

Carrier Density & Carrier Neutrality With over 14 network providers present, as of September 2025, there is a healthy mix of local and international carriers. The data center market includes carrier-neutral facilities primarily in the Lisbon and Porto metropolitan areas, allowing for flexible interconnection.

Direct Cloud On-Ramps Portugal provides direct cloud access, with 1 on-ramp enabling connectivity to 1 cloud region, as of September 2025. This includes dedicated connections to:

  • AWS

For access to other major cloud providers, operators offer private network extensions and virtual connections to primary European cloud hubs like Madrid and Paris.

Internet Exchange Points (IXPs) The primary Internet Exchange in the country is GigaPIX. Peering at GigaPIX allows networks to exchange traffic directly, reducing latency and transit costs for reaching local and regional end-users.

Bare Metal Bare metal server capacity is readily available in Portugal. Providers like Hivelocity and Latitude.sh offer dedicated server solutions for workloads requiring maximum performance and security without a virtualization layer.

Power Analysis

Portugal's power infrastructure is a significant advantage, characterized by high reliability and a strong emphasis on renewable energy sources.

Average Cost Of Power Industrial power costs typically range from €0.14 to €0.18/kWh, as of September 2025. This competitive pricing, combined with a green energy mix, helps control operational expenditures while meeting sustainability targets.

Power Grid Reliability The national power grid is reliable and well-engineered, especially in the major economic centers where data centers are located. The grid benefits from a diverse energy mix where renewables constitute approximately 88% of generation, enhancing grid stability and predictability.

Market Access, Business & Tax Climate

Portugal offers a stable business environment with excellent access to European and Atlantic markets.

Proximity To Key Business Districts Most data centers are clustered around Lisbon, the nation's capital and economic heart, and Porto, a major industrial and commercial hub. This proximity provides low-latency connectivity to financial services, technology companies, and enterprise customers.

Regional Market Reach A deployment in Portugal effectively serves the entire Iberian Peninsula, including Spain. Its unique geographic and linguistic ties also make it an ideal digital gateway to Brazil and Lusophone African nations like Angola and Mozambique.

Tax Advantage For Data Centers Portugal does not currently offer tax incentives specifically for data center investment or operations. The country's primary financial appeal lies in its competitive operational costs, including power, and its strategic location rather than direct tax benefits.

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 minimizes the threat of environmental disruptions to data center operations.

While the overall risk is minimal, key considerations for infrastructure planning include:

  • Coastal Flood: The highest individual risk factor, reflecting the country's extensive coastline.
  • Tsunami: A known but infrequent hazard for coastal areas.
  • River Flood: A moderate risk in specific low-lying areas and river basins.
  • Earthquake: The region has some seismic activity, primarily affecting the south.
  • Drought: A recurring environmental challenge with potential impacts on water resources for cooling.
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