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Data Centers in Lisbon

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Lisbon – Strategic Hub for Transatlantic Connectivity

Lisbon is an essential market for companies requiring low-latency connectivity between Europe, Africa, and the Americas. Its position as a major landing point for transatlantic subsea cables makes it a primary gateway for content delivery, cloud services, and international business, directly impacting application performance and market reach.

Lisbon: At A Glance

FactorRating / DataNotes
Global Connectivity GradeBA growing ecosystem anchored by significant subsea cable landings.
Direct Cloud On-RampsOver 1 – as of September 2025Direct access is available via AWS.
Power Cost€0.14 – €0.18/kWhMix is ~88% renewables, enhancing sustainability goals.
Disaster RiskLow (1.9/10) – as of September 2025Overall risk profile is favorable for critical infrastructure.
Tax IncentivesNoNo specific incentives for data centers are currently offered.
Sales Tax23% VAT – as of September 2025The standard rate applies to equipment and services.

Network & Connectivity Ecosystem

Lisbon's network infrastructure is defined by its strategic importance as an intercontinental hub.

Carrier Density & Carrier Neutrality: The market provides access to over 13 network carriers as of September 2025. Multiple carrier-neutral data centers ensure competitive interconnection options.

Direct Cloud On-Ramps: Over 1 cloud on-ramp enables dedicated access to 1 cloud region as of September 2025. Direct connections are available for AWS. For other providers, private network extensions can be established from Lisbon to major European cloud hubs like Madrid or Paris.

Internet Exchange Points (IXPs): The primary exchange is GigaPIX, which facilitates efficient, low-latency traffic exchange between local and international networks, reducing reliance on transit providers.

Bare Metal: On-demand bare metal servers are readily available from providers in the Lisbon market, including options from Hivelocity and Latitude.sh.

Power Analysis

Average Cost Of Power: Industrial power costs range from €0.14 – €0.18/kWh as of September 2025. This competitive pricing, combined with a high percentage of renewables, helps manage operational expenses and achieve sustainability targets.

Power Grid Reliability: The electrical grid serving Lisbon's data centers is well-engineered and stable. Facilities are supported by redundant power feeds from multiple utility substations, ensuring high levels of uptime.

Market Access, Business & Tax Climate

Proximity To Key Business Districts: Data centers in the Lisbon area are situated to serve the city's central business districts and a rapidly expanding technology sector. This proximity is ideal for financial services, media, and enterprise clients.

Regional Market Reach: Lisbon provides exceptional low-latency access to Western Europe. More importantly, it is one of the premier European locations for connecting to Brazil, West Africa, and North America via subsea cable systems.

Tax Advantage For Data Centers: Portugal does not currently offer tax incentives specifically for data center development or operation. The country's broader foreign investment climate can be influenced by political shifts, affecting the stability of large-scale project financing.

Natural Disaster Risk

Portugal has a very low overall natural disaster risk profile, rated at 1.9 out of 10 as of September 2025. While the aggregate risk is low, operators should engineer facilities to account for specific regional hazards.

The most significant natural risks for the region include:

  • Coastal Flood: 4.6/10
  • Tsunami: 4.3/10
  • River Flood: 3.8/10
  • Earthquake: 3.4/10
  • Drought: 3.3/10
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