Summary:
Portugal's data center market projected to reach $1.3 billion by 2029 with a CAGR of 6.52%.
Major global players like Google and AWS are expanding their presence in Portugal.
The market is committed to sustainability, exemplified by Equinix's renewable energy agreements.
The launch of 5G networks is expected to drive increased demand for data centers.
A total of 15 existing and 6 upcoming facilities are contributing to the market growth.
Overview of the Portuguese Data Center Market
The Portuguese Data Center Market is rapidly gaining momentum, with a projected market value of USD 1.3 billion by 2029, reflecting a CAGR of 6.52% from its current valuation of USD 890 million in 2023. This growth positions Portugal as a key player in the European data center landscape, driven by both local and global investments.
Strategic Advantages
Portugal's strategic geographical location enhances its role as a vital hub for data reception, processing, and transmission, connecting multiple continents. Notable projects in regions like Sines and Lisbon underscore the country’s commitment to advancing digital connectivity.
Key Highlights
- Major Investments: Global giants like Amazon Web Services (AWS), Google, and Oracle are establishing their presence in Portugal. For instance, Google Cloud's new cloud region aims to meet the rising demand for digital transformation.
- Sustainability Efforts: The market is focused on sustainability, with Equinix recently signing a 10-year Power Purchase Agreement (PPA) for renewable energy, ensuring minimal environmental impact.
- Technological Innovation: The ICT sector, which includes innovative startups and research partnerships with universities, constitutes nearly 10% of Portugal's GDP. Collaborations, such as the one between Altice Portugal and Nokia to enhance 5G networks, highlight the technological drive.
- 5G Rollout: The launch of the first 5G Standalone network by NOS is set to cover over 93% of the population, significantly boosting data center demand due to increased data traffic.
Market Insights
- Current and Upcoming Facilities: The report details 15 existing data centers and 6 upcoming facilities across 5 locations in Portugal, showcasing a robust market landscape.
- Investment Breakdown: Investments are anticipated in various segments, including IT infrastructure, electrical and mechanical systems, and general construction.
Conclusion
The Portugal Data Center Market is on the cusp of significant growth, driven by strategic investments, sustainability efforts, and technological advancements, making it an attractive landscape for investors and operators alike.
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