We are happy to present the first report produced by CBRE on the Portuguese Data Centre market.

The continued development of technologies such as IoT, AI, automatization, cloud computing, new internet applications and social media, have been driving exponential amounts of data This trend was leveraged over the last year as we increased our online working environments during the COVID-19 pandemic. As a result, the data centre industry (offering leased data centre supply) is seen high supply and demand growth. Demand from cloud computing companies (including hyperscale cloud providers) has accounted for much of this growth in the traditional European markets – and we are now starting to hear of similar cloud interest in the Portuguese market.

Effectively, the Portuguese data centre market is small, with limited presence from international operators and no hyperscalers. However, four data centre projects have recently been announced. In addition, data centre operators from outside of the market have shown interest in entering the market, while existing providers are looking to expand into new premises. At the same time the recent connection with two relevant new submarine cables, which link to the Americas and Africa, will support this growth.

We expect that over time more data traffic is exchanged in Portugal and local demand for data centre services grows.