INTELLIGENT TECHNOLOGY: AI DEMAND

A study by Copenhagen Economics finds that AI will drive major investment in state-of-the-art, energy-efficient data centres.

The study, Assessment of the Socio-Economic Benefits of the Data Center Sector in Portugal, released on Monday, estimates the sector could support up to 50,000 full-time jobs each year across direct, indirect and induced employment, assuming favourable investment and regulatory conditions.

Between 2022 and 2024, data centres contributed € 311 million to Portugal’ s GDP and supported approximately 1,700 jobs annually. They have also helped attract and retain skilled professionals, supported regional development and opened up new pathways in education. The report highlights Portugal’ s strong pool of qualified professionals in data-centre-related fields – a view shared by many in the digital ecosystem – and notes a solid base of around 230,000 ICT specialists, along with a high proportion of STEM graduates.

By 2030, about 70 % of computing capacity is expected to be dedicated to AI applications, according to the study. This underscores the need for modern, resilient and sustainable infrastructure. Demand for such capacity is forecast to grow by 33 % annually through to the end of the decade. The successful adoption of cloud computing, big data and AI solutions by both businesses and public bodies relies on the availability of efficient and scalable data centres offering low-latency connectivity. Without this foundation, the full benefits of digital technologies for enterprises, public services and individuals may not be realised.

The analysis concludes that Portugal is wellplaced to become a major European hub for AI and digital infrastructure.

Contributing factors include low electricity costs – roughly 30 % below the European average – and a high share of renewable energy, accounting for 87.5 % of total net generation. The country’ s Atlantic coastline also provides ideal conditions for resource-efficient cooling systems, including seawater use, which helps reduce freshwater use, energy consumption and operational costs.

Portugal also has a strong connectivity infrastructure. It is estimated that around 25 % of the world’ s submarine cables pass through the country. In addition, it offers 92 % fibre optic coverage, ranking third in the European Union.

“ 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,” said Robert Dunn, CEO, 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 represents a fraction of future opportunities,” says Dr Bruno Basalisco, Director, Copenhagen Economics. p

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