The Portuguese government has introduced its Nation Data Center Plan (PNDC) , a policy framework aimed at expanding the country’s data center sector and positioning it as a European hub for digital infrastructure.
The plan responds to the growing importance of data centers for economic digitalisation, investment attraction, and digital sovereignty. It also seeks to address barriers currently limiting sector growth, including complex regulation, fragmented institutional oversight, and Portugal’s relatively low installed capacity compared with the European average.
Data centers are increasingly viewed as critical infrastructure due to rising demand for computing power, driven in part by artificial intelligence. Portuguese officials argue the country is well placed to benefit from this trend, as other European markets face constraints on expanding new capacity. They expect potential gains in GDP, employment, and the trade balance if investment accelerates.
The PNCD outlines 15 measures to be implemented between 2026 and 2027 that are grouped into four areas including regulation and governance, energy and infrastructure, market demand, and territorial development of the sector. The plan also includes environmental and energy efficiency objectives alongside efforts to balance regional development.
Portugal currently lacks established data center hubs and lags behind more developed European locations in capacity and market maturity.
According to Mordor Intelligence, the Portugal data center market installed 11 MW IT load in 2025 and is projected to reach 22.1 MW by 2030 at 14.97 percent CAGR). Growth is driven by hyperscale cloud regions, direct trans-Atlantic cables, and an 87.4 percent renewable energy mix, which reduces latency and operating costs.
Its geographic position between Europe, the Americas, and Africa enables the country to receive traffic previously routed through Southern Europe. Strong submarine cable connectivity is shifting development toward AI-ready campuses and power-dense infrastructure. €12 billion (US$ 13 billion) is committed through 2030 to expand capacity, edge nodes, and renewable energy integration.