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Data Centers in Lisbon

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Lisbon – Your Atlantic Hub for Connectivity

Executive Summary

Lisbon is a critical digital gateway connecting Europe with Africa and the Americas. Its dense concentration of subsea cable landings makes it the ideal market for businesses requiring low-latency, high-performance connectivity to these key growth regions. Deploying in Lisbon secures a strategic foothold for delivering services and applications with superior speed and reliability.

Lisbon: At A Glance

FactorRating / DataNotes
Global Connectivity GradeBStrong subsea cable access; developing terrestrial fiber density.
Direct Cloud On-RampsOver 1 — as of September 2025AWS is available locally; others accessible via private network extensions.
Power Cost€0.18 – €0.24/kWh, as of September 2025High renewable mix (~88%) helps meet corporate sustainability targets.
Disaster RiskLow (1.9/10), as of September 2025Seismic and coastal flood risks are the primary considerations.
Tax IncentivesNoRecent political shifts have stalled new broad-based tech incentives.
Sales Tax23% VAT, as of September 2025Standard European Union value-added tax rate applies.

Network & Connectivity Ecosystem

Carrier Density & Carrier Neutrality

Lisbon supports a healthy ecosystem with over 13 network carriers available as of September 2025. The market offers access to multiple carrier-neutral data centers, providing diverse options for building resilient, multi-homed network architectures.

Direct Cloud On-Ramps

Over 1 on-ramp enables access to 1 cloud region as of September 2025. Direct on-ramp access is available for AWS. Access to other major clouds like Google Cloud and Microsoft Azure is typically established via network extensions to Madrid or other primary European hubs.

Internet Exchange Points (IXPs)

The primary internet exchange is GigaPIX. This IXP facilitates low-latency traffic exchange between local and international networks, improving performance and reducing costs for content and application delivery across the region.

Bare Metal

Bare metal services are readily available for workloads that demand dedicated, high-performance compute. Providers like Hivelocity offer on-demand server capacity in the Lisbon market.

Power Analysis

Average Cost Of Power

Expect industrial power costs to range from €0.18 to €0.24 per kWh, as of September 2025. This pricing is competitive for a Western European capital, and the high renewable energy mix (~88%) helps meet corporate sustainability goals.

Power Grid Reliability

The power grid in the Lisbon area is reliable and well-engineered to support critical data center operations. Modern facilities are typically fed by redundant power from multiple utility substations, ensuring high levels of uptime.

Market Access, Business & Tax Climate

Proximity To Key Business Districts

Lisbon's data centers are strategically located to serve the city's growing technology and service-based economy. This proximity provides low-latency connectivity essential for financial services, media, and enterprise operations concentrated in the capital.

Regional Market Reach

Lisbon is uniquely positioned to serve not only the Iberian Peninsula but also as a primary digital landing point for traffic to and from Africa and the Americas. Its extensive subsea cable network makes it a crucial hub for intercontinental data flows.

Tax Advantage For Data Centers

Portugal's current tax climate does not offer specific, large-scale incentives for data center development. Businesses should operate under the standard corporate tax structure, which is straightforward but lacks the special benefits found in some other EU markets.

Natural Disaster Risk

Portugal has a Very Low overall natural disaster risk profile, with a score of 1.9 out of 10 as of September 2025. While the overall risk is minimal, operators should engineer for specific regional hazards. Key considerations for the Lisbon area include:

  • Coastal Flood (4.6/10)
  • Tsunami (4.3/10)
  • River Flood (3.8/10)
  • Earthquake (3.4/10)

The primary risks are seismic and coastal, reflecting the country's tectonic placement and Atlantic shoreline. These factors are well-understood and addressed in modern data center construction and operational planning.

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