Data center boom to make Portugal one of Europe's fastest-growing power markets, EDP says

Edp Renewables SA

30/07/2026 18:21

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 EDP.LS 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 MSFT.O 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.

 (Reporting by Sergio Goncalves; Editing by Toby Chopra)
 ((sergio.goncalves@thomsonreuters.com; +351213509204; Reuters Messaging: sergio.goncalves.reuters.com@reuters.net))