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Lisbon – Bridging Continents with High-Performance Connectivity

Lisbon is a vital interconnection point for enterprises targeting the Iberian Peninsula and the South Atlantic subsea cable routes. This market is a primary choice for organizations requiring high-speed data transfer between Europe, Africa, and South America, positioning workloads at the edge of trans-continental traffic for maximum performance.

Lisbon: At A Glance

FactorRating / DataNotes
Global Connectivity GradeBStrong regional hub with expanding subsea cable density.
Direct Cloud On-RampsOver 1 – as of September 2025Local access includes AWS.
Power Cost€0.19/kWh – €0.25/kWh, as of September 2025High renewable mix (88%) supports corporate sustainability goals.
Disaster RiskLow (1.9/10), as of September 2025Overall risk is minimal despite coastal exposure.
Tax IncentivesNoCurrent political climate has stalled specific data center incentives.
Sales Tax23% VAT, as of September 2025Standard VAT rate applies to all digital services.

Network & Connectivity Ecosystem

Lisbon serves as the primary landing point for numerous subsea cables, making it a critical gateway for global data transit.

Carrier Density & Carrier Neutrality: Lisbon hosts ~10–15 carriers as of September 2025. The ecosystem is increasingly neutral, allowing for flexible cross-connects between diverse international and local providers.

Direct Cloud On-Ramps: Over 1, enabling access to 1 cloud regions as of September 2025. Direct on-ramps include AWS, which facilitates low-latency connections for hybrid cloud deployments without relying on the public internet.

Internet Exchange Points (IXPs): GigaPIX serves as the primary exchange in the region, significantly reducing latency by keeping local traffic within the Portuguese network fabric as of September 2025.

Bare Metal: High-performance bare metal services are readily available in the market through providers such as Latitude.sh, providing dedicated resources for compute-intensive workloads as of September 2025.

Power Analysis

Energy in Portugal is characterized by a heavy transition toward carbon-free sources, offering a green profile for data-heavy operations.

Average Cost Of Power: Industrial rates range from €0.19/kWh to €0.25/kWh as of September 2025. With a renewable energy mix of approximately 88%, the grid provides a green power profile that satisfies modern ESG compliance requirements.

Power Grid Reliability: The grid is well-engineered and resilient, benefiting from significant investment in renewable integration and multi-substation support. Reliability remains high across the primary data center corridors in Loures and Carnaxide as of September 2025.

Market Access, Business & Tax Climate

The local business environment is stable and provides a direct path into the European Union regulatory framework.

Proximity To Key Business Districts: Data centers are located near major business hubs such as Parque das Nações and the central business district. This proximity ensures low-latency connectivity for the financial services and growing tech sectors in the capital as of September 2025.

Regional Market Reach: Lisbon is the landing point for numerous subsea cables, making it an essential hub for reaching markets in Brazil, West Africa, and the rest of Southern Europe.

Tax Advantage For Data Centers: Portugal does not currently offer specific tax breaks for data center operators. Businesses benefit from the operational efficiency of the local workforce and the stable regulatory environment of the European Union.

Natural Disaster Risk

The overall natural disaster risk for Lisbon is Low, with a score of 1.9/10 as of September 2025. Modern facilities in the region are purpose-built to manage environmental factors associated with its coastal location.

  • Coastal Flood: 4.6 (Moderate regional risk) as of September 2025
  • Tsunami: 4.3 (Moderate regional risk) as of September 2025
  • River Flood: 3.8 (Low risk) as of September 2025
  • Earthquake: 3.4 (Low risk) as of September 2025
  • Drought: 3.3 (Low risk) as of September 2025

Other natural hazards are considered minor or not listed for this metro area as of September 2025. Facilities in Loures and Carnaxide use standard mitigation strategies for these specific regional factors.

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