Portugal Data Center Market - Investment Analysis & Growth Opportunities 2024-2029

MARKET OVERVIEW

The Portugal data center market will witness cumulative investments of over USD 1.30 billion by 2029, growing at a CAGR of 6.52% during the forecast period. The establishment of the Portugal Data Centre Association (PortugalDC) in October 2023 aims to foster innovation, enhance connectivity, promote sustainability, and ensure security within the industry. This collaboration between government and industry stakeholders is crucial for advancing Portugal's digital infrastructure. Furthermore, major projects like Start Campus and Quetta Data Centers underscore investor confidence in the country's market. For instance, in February 2024, Azora and Core Capital launched Quetta Data Centers, planning to invest over USD 543 million in constructing six Edge data centers across Portugal and Spain, highlighting substantial capital influx into the sector.

Portugal's stable economy, demonstrated by positive growth rates into Q3 2023, has positioned the country as a leading destination for data center investments. The economy's resilience and strategic global connectivity initiatives support robust development in the Portugal data center market. Furthermore, Lisbon's data center infrastructure is rapidly expanding, with plans to double its capacity to over 120,000 square feet during the forecast period. This expansion reflects the region's growing demand and strategic investments, solidifying Lisbon as a pivotal data center hub.

Investments in submarine cables significantly enhance Portugal's connectivity. In March 2024, Vodafone led the landing of the 2Africa submarine cable system, boosting internet connectivity between Africa and Europe. Additionally, Google's Nuvem subsea cable, which is planned to be operational by 2026, will further strengthen transatlantic connections. Also, the burgeoning demand for cloud services is driving the colocation market. Cloud computing adoption in the region has significantly increased. The entry of Start Campus is expected to accelerate growth in colocation services, catering to sectors like IT, telecom, BFSI, and government, ensuring robust infrastructure for digital transformation.

KEY HIGHLIGHTS

1. The Portugal data center market is becoming a key player in the European market, with investments from local and global operators. For instance, the presence of the Santa Maria Island FTZ and the Madeira International Business Centre provides fiscal advantages, attracting data center investments. Additionally, Gulf Data Hub is planning significant regional expansions to cater to the growing demand.
2. Global cloud service giants such as Amazon Web Services (AWS), Google, and Oracle are establishing a presence in the country. In January 2023, Google Cloud announced plans to launch a new cloud region in the country to cater to increasing demand, facilitating digital transformation for local entities like the Alshaya Group and the Government of Portugal.
3. Portugal's strategic geographical position enables it to serve as a central hub for data reception, processing, and transmission, connecting multiple continents. This positioning aligns with Portugal's ambition to lead in shaping the future of digital connectivity and technological advancement, as evidenced by development projects in locations like Sines and Lisbon.
4. The Portugal data center market is committed to sustainability. In December 2023, Equinix signed a second 10-year Power Purchase Agreement (PPA) with Sonnedix to procure renewable electricity from a 149MW solar PV project. Such initiatives ensure that data centers operate with minimal environmental impact.
5. The Portuguese ICT sector, comprising innovative startups and supported by top-tier research collaborations with local universities, constitutes nearly 10% of the country's GDP. In April 2023, Altice Portugal partnered with Nokia to enhance 5G core networks, underscoring the country's commitment to technological advancements and digital innovation.
6. Portugal's 5G rollout is significantly impacting the Portugal data center market. In November 2023, NOS launched the country's first 5G Standalone network, featuring enhanced capacity and ultra-low latency. In collaboration with Nokia and Ericsson, this initiative aims to cover over 93% of the population, driving demand for data centers to support increased data traffic.
7. These key points illustrate the region's dynamic and rapidly evolving Portugal data center market, driven by strategic government initiatives, significant investments, technological advancements, and its strategic geographical positioning.

WHY SHOULD YOU BUY THIS RESEARCH?

1. Market size is available regarding investment, area, power capacity, and Portugal colocation market revenue.
2. An assessment of the data center investment in Portugal by colocation and enterprise operators.
3. Investments in the area (square feet) and power capacity (MW) across locations in the country.
4. This report details a detailed study of the existing Portugal data center market landscape, provides in-depth market analysis, and makes insightful predictions about industry size during the forecast period.
5. Snapshot of existing and upcoming third-party data center facilities in Portugal
6. Facilities Covered (Existing): 15
7. Facilities Identified (Upcoming): 06
8. Coverage: 5+ Locations
9. Existing vs. Upcoming (Area)
10. Existing vs. Upcoming (IT Load Capacity)
11. Data Center Colocation Market in Portugal
12. Market Revenue & Forecast (2023-2029)
13. Retail Colocation Pricing
14. The Portugal data center market investments are classified into IT, power, cooling, and general construction services with sizing and forecast.
15. A comprehensive analysis of the latest trends, growth rate, potential opportunities, growth restraints, and prospects for the industry.
16. Business overview and product offerings of prominent IT infrastructure providers, construction contractors, support infrastructure providers, and investors operating in the market.
17. A transparent research methodology and the analysis of the demand and supply aspects of the market.

VENDOR LANDSCAPE

1. Some key investors in the Portugal data center market include Altice Portugal, Ar Telecom, Equinix, NOS Sistemas, WebTuga, and REN, among others.
2. The Portugal data center industry also witnessed the entry of Start Campus, a colocation data center operator.
3. The construction contractors in the country have both a global and local presence, which supplies significant operators in the Portugal data center market; for instance, ARSMAGNA, CAP DC, O/M, Proef, Quark, J. AGOSTINHO SILVA ENGENHARIA, and SOMA PARALELA, among others.

EXISTING VS. UPCOMING DATA CENTERS

1. Existing Facilities in the Region (Area and Power Capacity)
2. Lisbon
3. Other Cities
4. List of Upcoming Facilities in the Region (Area and Power Capacity)

REPORT COVERAGE:

This report analyses the Portugal data center market share. It elaboratively analyses the existing and upcoming facilities and investments in IT, electrical, mechanical infrastructure, general construction, and tier standards. It discusses market sizing and investment estimation for different segments. The segmentation includes:

1. IT Infrastructure
2. Servers
3. Storage Systems
4. Network Infrastructure
5. Electrical Infrastructure
6. UPS Systems
7. Generators
8. Transfer Switches & Switchgears
9. PDUs
10. Other Electrical Infrastructure
11. Mechanical Infrastructure
12. Cooling Systems
13. Rack Cabinets
14. Other Mechanical Infrastructure
15. Cooling Systems
16. CRAC & CRAH Units
17. Chiller Units
18. Cooling Towers, Condensers & Dry Coolers
19. Economizers & Evaporative Coolers
20. Other Cooling Units
21. General Construction
22. Core & Shell Development
23. Installation & Commissioning Services
24. Engineering & Building Design
25. Fire Detection & Suppression Systems
26. Physical Security
27. Data Center Infrastructure Management (DCIM)
28. Tier Standard
29. Tier I & Tier II
30. Tier III
31. Tier IV

VENDOR LANDSCAPE

1. IT Infrastructure Providers: Cisco Systems, Dell Technologies, Fujitsu, Hewlett Packard Enterprise, IBM, Lenovo, Oracle, NEC, and Pure Storage.
2. Data Center Construction Contractors & Sub-Contractors: ARSMAGNA, CAP DC, O/M, Proef, Quark, J. AGOSTINHO SILVA ENGENHARIA, and SOMA PARALELA.
3. Support Infrastructure Providers: ABB, Caterpillar, Daikin Applied, ebm-papst, Johnson Controls, Legrand, and Siemens.
4. Data Center Investors: Altice Portugal, Ar Telecom, Equinix, NOS Sistemas, WebTuga, and REN.
5. New Entrants: Start Campus.

TARGET AUDIENCE

1. Real Estate Investment Trusts
2. Construction Contractors
3. Infrastructure Providers
4. New Entrants
5. Consultants/Consultancies/Advisory Firms
6. Corporate and Government Agencies