Portugal is rapidly emerging as one of Europe’s most promising data centre markets as investors increasingly prioritise access to electricity over traditional demand drivers, according to a new report by global real estate and investment management firm Colliers.
The EMEA Data Centre Markets Report | H1 2026 identifies the Portuguese capital Lisbon as one of the continent’s fastest-growing markets, alongside Madrid, Milan and Helsinki, as Europe’s established data centre hubs struggle with power shortages, land constraints and lengthy planning processes.
The report says the European, Middle East and Africa (EMEA) region now has 12.5GW of operational data centre capacity, but key markets including Frankfurt, London, Amsterdam, Paris and Dublin are reaching their limits because of insufficient grid capacity and regulatory restrictions.
As a result, investment is increasingly shifting towards emerging locations where new developments can be delivered more quickly.
“The availability of energy has become the main criterion for investment in data centres,” said Gonzalo Martín, Head of Data Centres Capital Markets EMEA at Colliers.
“Today, investors prioritise markets where there is genuine capacity to develop projects, rather than locations where demand simply exists.”
Portugal is benefiting from several competitive advantages, the report says, including its strategic position linking Europe, Africa and the Americas, an expanding network of international submarine cables, a high share of renewable energy generation and favourable conditions for large-scale developments.
Lisbon currently has 58MW of operational data centre capacity, but the pipeline is expanding rapidly, with 408MW under development and a further 821MW of projects in the early planning stages.
The report also highlights the growing importance of the Lisbon-Sines corridor, which is establishing itself as a key Atlantic gateway for Europe’s digital infrastructure. Sines has attracted significant international investment in recent years thanks to its submarine cable connections, renewable energy resources and large areas suitable for hyperscale data centres.
Demand for new facilities continues to be driven by the expansion of cloud computing, artificial intelligence and increasing requirements for digital sovereignty. However, Colliers says the industry’s next phase of growth will depend less on demand and more on whether countries can provide sufficient electricity, grid capacity and efficient licensing procedures.
Across the EMEA region, around 78GW of new data centre projects have been announced, although Colliers cautions that many may never be built.
“The gap between announced projects and those that actually reach the market continues to widen,” said Lottie Tollman, Head of Data Centres Advisory EMEA at Colliers.
“The markets that successfully combine energy availability, supportive regulation and rapid execution will attract the greatest share of investment over the coming years.”
The findings reinforce Portugal’s growing reputation as one of Europe’s emerging digital infrastructure hubs, with the combination of renewable energy, international connectivity and available development capacity helping to attract global technology investment.