Data center expansion accelerates in Portugal and Brazil

Portugal is implementing a National Data Centre Plan to establish 44 new data center projects across the country. The initiative aims to meet rising demand from artificial intelligence and cloud computing, with a total expected processing capacity exceeding 2.6 gigawatts (GW). The government estimates initial investments at approximately €8 billion, potentially generating 3,300 direct jobs per installed gigawatt. While much of the capacity is expected in the Lisbon area, the strategic location and international submarine cable connections, such as Google’s Nuvem cable, are central to the strategy. Sines remains a key technological hub, hosting the 1.2 GW Start Campus project.

In Brazil, the data center market is expanding beyond its traditional hub in São Paulo, which currently holds 76% of the nation’s live capacity. Driven by hyperscale and AI-related demand, developers are increasingly looking toward Rio de Janeiro, Fortaleza, and southern Brazil. This shift is motivated by a shrinking supply of powered land and slow transmission upgrades in São Paulo. While new federal tax incentives may improve project economics in emerging regions, developers face ongoing challenges regarding electricity infrastructure, environmental licensing, and the availability of dependable power.