Data center boom to make Portugal one of Europe's fastest-growing power markets, EDP says
XLU•Portugal power demand seen growing on data center pipeline
LISBON, July 30 (Reuters) - Electricity demand in Portugal is expected to grow at a 4.5% compound annual rate over the next decade, making it one of Europe's fastest-growing power markets, fuelled by a booming pipeline of data centres, the CEO of utility EDP said on Thursday.
- The country is emerging as a key European data centre hub, with more than 2.6 gigawatts under development, led by the 1.2-GW Start Campus project in Sines, backed by Microsoft AI infrastructure investments, with the pipeline expected to grow substantially.
- Portugal's appeal for data centre investors is underpinned by abundant wind, solar and hydropower, providing access to highly competitive renewable electricity to power energy-intensive projects.
- CEO Miguel Stilwell d'Andrade said the utility's internal forecasts point to electricity demand in Portugal growing at a compound annual rate of 4.5% between 2026 and 2035, among "the fastest growth rates in Europe", with 60% of the increase driven by a sizeable pipeline of data centres.
- Portuguese electricity consumption rose 3.5% year-on-year in the first half to a record 27.2 TWh, according to grid operator REN.
- That outpaced growth in the European Union, where electricity demand rose 2% over the same period, according to the International Energy Agency, which forecasts EU power consumption will grow at a CAGR of 2.3% through 2030.
- On a call with analysts, the CEO said "Portugal is positioning itself as an emerging hyperscale data centre hub" thanks to its low-cost renewable electricity power costs and a network of transatlantic subsea cables connecting Europe with the Americas and Africa.
- EDP sees Portugal as "a major growth opportunity across networks, supply, renewables and potentially integrated solutions for large customers", he said.
- U.S. Ambassador to Portugal John Arrigo said last week that Portugal is on track to attract more than $40 billion in U.S. technology investment by 2031, becoming Europe's largest hub for American AI infrastructure investment.
