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Portugal Data Center Market Size to Reach $3.99 Billion by 2031, Growing at a CAGR of 20% | Arizton
According to Arizton recent research, the Portugal data center market size is expected to reach USD 3.99 billion by 2031, growing at a CAGR of 20% during the forecast period.
To Know More, Click: https://www.arizton.com/market-reports/portugal-data-center-market
Portugal Data Center Market Snapshot
Market Size (Investment): USD 3.99 Billion (2031)
Market Size (Area): 230 Thousand Sq. Feet (2031)
Market Size (Power Capacity): 14 Mw (2031)
CAGR - Investment (2025-2031): 20%
Colocation Market Size (Revenue): USD 350 Million (2031)
Historic Year: 2022-2024
Base Year: 2025
Forecast Year: 2026-2031
Portugal is firmly establishing itself as a fast-growing and strategic data center hub in Southern Europe, driven by strong digital transformation, rising cloud adoption, and significant demand for artificial intelligence (AI) compute infrastructure. Portugal's strong data privacy framework, longstanding political stability, and membership in the EU make it an attractive location for data center investment. The country is emerging as one of Europe's key destinations for digital infrastructure development. In addition, the strategic location of the Iberian Peninsula, along with abundant renewable energy resources and increasing international connectivity, is strengthening Portugal's position as a hub for sustainable digital infrastructure growth.
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Portugal Data Center Market - Key Highlights
• Portugal is emerging as a strategic alternative to traditional FLAP data center markets, supported by renewable energy availability, Atlantic connectivity, and increasing hyperscale investments.
• Portugal's development pipeline is becoming one of the strongest in Europe, with nearly 1,930 MW planned compared to just over 67.1 MW currently operational, highlighting significant long-term expansion opportunities.
• Lisbon continues to attract major colocation investments, while emerging locations such as Sines and Pego are gaining momentum for large-scale and renewable-powered campus developments.
• Data center construction costs in Portugal remain comparatively competitive at around $9-10 million per MW, strengthening the country's position as a cost-efficient European expansion destination.
Portugal Is Emerging as a Strategic Expansion Market for Hyperscale Operators
Portugal is emerging as a fast-growing colocation data center hub in Europe, with Lisbon leading the market as the country's primary data center destination. The market is witnessing strong investment from operators such as Equinix, Start Campus, AtlasEdge, NOS, and AR Telecom, reflecting rising demand for both retail and wholesale colocation services. While retail colocation continues to support SMEs and enterprise customers, the bigger growth opportunity is shifting toward wholesale colocation and hyperscale-ready developments driven by increasing cloud adoption. Companies such as Start Campus, AtlasEdge, and the MERLIN Properties-Edged partnership are expanding scalable capacity to meet future hyperscale demand, with potential expansion from major cloud providers such as Microsoft, Amazon Web Services, and Google expected to further strengthen Portugal's digital infrastructure market.
New Data Center Openings Are Expanding Portugal's Digital Infrastructure Capacity
• In September 2025, DST Group secured a $5.7 million contract to develop a new data center at the University of Minho's Azurém campus in Guimarães, Portugal. The facility will support the National Center for Advanced Computing, highlighting growing investments in high-performance computing and digital infrastructure across the country.
• Portugal's colocation expansion continues with the launch of the LS2 data center in June 2025. The facility entered operations with 4.9 MW of power capacity and an initial investment of around $57.1 million, reflecting rising demand for scalable colocation infrastructure and enterprise-ready capacity in the market.
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Major Companies Leading the Portugal Data Center Market
IT Infrastructure Providers
• Cisco
• Dell Technologies
• Everpure
• Fujitsu
• Hewlett Packard Enterprise
• IBM
• Inspur
• Lenovo
• NEC Corporation
• NVIDIA
• NetApp
• Oracle
Data Center Construction Contractors & Sub-Contractors
• ARSMAGNA
• Arcadis
• ARX Portugal Arquitectos
• ACA
• Afaconsult
• CAP DC
• Conduril
• DST Group
• Gleeds
• J.AGOSTINHO SILVA ENGENHARIA
• O/M
• Proef
• Quark
• SOMA PARALELA
Support Infrastructure Providers
• ABB
• Caterpillar
• Daikin Applied
• Ebm-Papst
• Johnson Controls
• Legrand
• Schneider Electric
• Siemens
Data Center Investors
• Altice Portugal
• AR Telecom
• Equinix
• NOS Sistemas
• REN
• Start Campus
New Entrants
• AtlasEdge
• Digital Realty
• EDC One
• Edged
• FF Ventures
• Quetta Data Centers
• Templus
The Portugal Data Center Market Report Includes Size in Terms of
1. IT Infrastructure: Servers, Storage Systems, and Network Infrastructure
2. Electrical Infrastructure: UPS Systems, Generators, Transfer Switches & Switchgears, PDUs, and Other Electrical Infrastructure
3. Mechanical Infrastructure: Cooling Systems, Rack Cabinets, and Other Mechanical Infrastructure
4. Cooling Systems: CRAC & CRAH Units, Chiller Units, Cooling Towers, Condensers & Dry Coolers, and Other Cooling Units
5. General Construction: Core & Shell Development, Installation & Commissioning Services, Engineering & Building Design, Fire Detection & Suppression Systems, Physical Security, and Data Center Infrastructure Management (DCIM)
6. Tier Standard: Tier I & Tier II, Tier III, and Tier IV
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What Key Findings Will Our Research Analysis Reveal?
• How much MW of power capacity will be added across Portugal in 2031?
• How big is the Portugal data center market?
• What factors are driving the Portugal data center market?
About Us:
Founded in 2017, Arizton Advisory & Intelligence delivers data-driven market research and strategic consulting that empowers clients to make informed decisions and drive growth. Combining quantitative and qualitative insights, we provide in-depth analysis across industries including Agriculture, Consumer Goods, Technology, Automotive, Healthcare, Data Centers, and Logistics. Recognized by top-tier media, our expert team transforms complex market data into actionable strategies, helping clients anticipate trends, seize opportunities, and stay ahead of the competition.
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Source: Arizton Advisory & Intelligence
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