Portugal's Data Center Boom to Make It One of Europe's Fastest-Growing Power Markets, EDP Says

Portugal is set to become one of Europe's fastest-growing electricity markets over the next decade, driven by a surge in data center development, according to energy utility EDP. The company projects that the country's electricity demand will expand at an annual rate of 4.5% through 2035, a pace that would place Portugal among the top growth markets on the continent.

The forecast is underpinned by a robust pipeline of data center projects exceeding 2.6 gigawatts, with the 1.2-gigawatt Start Campus facility in Sines serving as the anchor development. The pipeline reflects a broader wave of investment in digital infrastructure across Southern Europe, as hyperscale cloud providers and technology firms seek new hubs with access to renewable energy and competitive land costs.

Portugal's advantage lies in its abundant renewable power generation, particularly wind and solar, which aligns with the sustainability targets of major tech companies. The influx of U.S. technology investment has further accelerated the development pipeline, positioning the country as a strategic entry point for transatlantic digital connectivity and a viable alternative to more congested markets in Northern and Central Europe.

EDP's outlook highlights the growing interconnection between the energy and digital infrastructure sectors. As data center capacity expands, utilities are increasingly called upon to deliver reliable, low-carbon power at scale, making long-term supply agreements and grid modernization critical components of project development. The projected growth in Portuguese electricity demand underscores the scale of that challenge and the opportunity for energy providers to support the country's emergence as a regional data center hub.

The trajectory also carries implications for the broader European market, where data center construction is reshaping electricity demand forecasts in several countries. Portugal's experience is likely to serve as a reference point for other markets seeking to attract digital infrastructure investment while managing the associated energy requirements.