Direct and indirect socio-economic impact

The study Assessment of the Socio-Economic Benefits of the Data Centre Sector in Portugal estimates that the sector could support up to 50,000 full-time jobs every year, including direct, indirect, and induced employment, provided favourable investment and regulatory conditions are in place.

Between 2022 and 2024, data centres already added €311 million to Portugal’s GDP, also sustaining around 1,700 jobs annually, while drawing and retaining skilled professionals,  strengthening regional cohesion and opening up new education pathways. The report underscores Portugal’s deep bench of qualified talent in data-centre-relevant fields, a sentiment echoed by numerous digital-ecosystem stakeholders, and notes a solid tech base of roughly  230,000 ICT specialists alongside a high proportion of STEM graduates.

Artificial intelligence as a driving force

The study also highlights that by 2030, around 70% of computing capacity will be dedicated to AI applications, underscoring the need for modern, resilient, and sustainable infrastructure. Demand for this capacity is expected to grow at a rate of 33% per year through the end of the decade.

The widespread adoption of cloud computing, big data, and AI solutions by companies and public entities depends on the existence of efficient and scalable data centres capable of ensuring low-latency connectivity. Without this foundation, the full potential of digital technologies for businesses, public services, and users could be compromised.

Portugal’s competitive advantages

The analysis indicates that Portugal is well-positioned to become a key hub in AI and digital infrastructure in Europe.

This is underpinned by a competitive electricity cost – approximately 30% below the European average – and a large supply of electricity from renewable sources – 87.5% of total net generation.  Portugal’s Atlantic coast also provides conditions for resource-efficient cooling solutions that contribute to reducing freshwater consumption, energy consumption, and operational costs, such as the use of seawater.

Portugal benefits from a robust connectivity infrastructure, with approximately 25% of the world’s submarine cables passing through the country. It also offers 92% fibre optic coverage, ranking as the third-best network in the European Union (EU).

“Portugal has all the right conditions to establish itself as a leading digital and AI hub in Europe: strategic connectivity, clean energy, and a highly skilled workforce. This study confirms that, with the right public policies, data centres can become a driver of economic growth and territorial cohesion,” says Robert Dunn, CEO of Start Campus.

"Portugal is emerging as a key European destination for data centre investments, yet achieving its fullest potential cannot be taken for granted given intense international competition to host digital infrastructures. There are already significant economic benefits from existing data centres alone, which represent a fraction of future opportunities,” says Dr. Bruno Basalisco, Director, Copenhagen Economics. 

Policy conditions will shape future investments and corresponding socio-economic benefits

To ensure the full development of the sector and make the most of this industry’s potential, the study outlines five areas of action where policymakers could consider to foster investments:  ensure predictability and access to the electrical grid and components such as chips; streamline licensing processes for both technological and energy infrastructures; develop targeted measures for data centre investment; and promote digitalisation and AI adoption across the business sector and public administration.

The Copenhagen Economics report is based on an Input-Output macroeconomic model, using data from Eurostat, the OECD, and national operators. It also includes interviews with more than 15 stakeholders from the digital ecosystem, including AICEP, ANACOM, FCT, international technology companies, and local authorities.

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