According to the Savills “Impacts” report, the use of Artificial Intelligence is expected to require a doubling of large-scale Data Centre capacity over the next four years. Although the scale of demand means centres will be needed in markets around the world, energy infrastructure and network capacity will make installations easier in northern European locations, such as Malmö, Gothenburg, Stockholm, and Oslo.

Savills analysed 68 cities globally to assess which ones are best suited for Data Centre installations in terms of energy availability, as energy capacity tends to be the main factor in the development of these facilities (see the complete table below). Lisbon and Porto are among the top 30 locations with the best conditions for new Data Centre installations, considering factors such as energy production per capita, energy autonomy, renewable energy production, energy costs, and ease of access to power. 

“Artificial Intelligence has triggered demand for new Data Center spaces worldwide, and Portugal has definitely caught the attention of major global operators, which will generate large-scale investment in the country in the coming years,” states Tiago Cortez, I&L Capital Markets Associate at Savills. “The country currently has energy prices below the European average and, above all, one of the highest shares of energy produced from renewable sources. This allows Portugal to meet the growing demand for more efficient and sustainable technologies and to respond to increasingly stringent consumer and investor expectations on sustainability issues. Moreover, Portugal boasts one of the best fiber optic networks globally and has become the entry point for many submarine cables interconnecting continents through high-capacity data networks.” 

Tiago Cortez also points out that, “We have been working in the Data Centre sector for more than three years, initially handling demand for small and medium-scale projects. Over the last year and a half, the demand has shifted to massive projects, typically exceeding 300 MVA of power. It is increasingly challenging to find locations that meet operators’ needs.”

“With large cities often registering high energy demand from other sectors, it is often smaller cities that will find it easier to provide power to Data Centres, especially those with abundant renewable energy sources. However, data location requirements and the continuing need for some services to be located near major markets will continue to drive development even in hubs facing energy constraints,” comments Paul Tostevin, head of Savills World Research.

Scott Newcombe, EMEA Head of Data Centres, adds: “AI is significantly transforming the European Data Centre markets, driving increased demand for processing power and storage capacity. As organizations adopt AI technologies, they require advanced infrastructures to handle large volumes of data. This demand drives the expansion of existing Data Centers and the construction of new ones, promoting innovations in energy efficiency and cooling systems. Additionally, with stricter regulations on data protection and sustainability, Data Centre operators in Europe are investing in green technologies to meet compliance requirements and consumer expectations. Overall, AI is shaping a more robust, efficient, and environmentally conscious Data Centre landscape across the EMEA region.”