Pelagos planning ambitious 250MW facility in Gibraltar
Author: Joe Peck
Pelagos Data Centres, a developer of large-scale data centre infrastructure, has announced plans to build a major new data centre near the Port of Gibraltar, with capacity of up to 250MW by 2033.
Unveiled at a launch event at the offices of Gibraltar’s Chief Minister, Fabian Picardo, the project represents an investment of around £1.8 billion. It is the largest development currently planned in the territory by value, and among the largest in its history.
The facility will be built in five phases on a 20,000m² site. The first stage is scheduled to be operational in late 2027, with later phases delivered at intervals of around 18 months.
Transforming Gibraltar’s digital landscape
Funded entirely by private investment and backed by the Government of Gibraltar, the project is positioned as a step forward for the territory’s digital and economic development. It is intended to help meet Europe’s growing demand for data centre capacity, particularly as AI adoption accelerates across industries.
The site will operate independently of Gibraltar’s existing power grid and include a public leisure facility as part of the development.
Konstantin Sokolov, Chairman of Pelagos Data Centres, comments, “The scale of this project marks a new chapter for Gibraltar and for Europe’s digital capabilities.
“Just as electricity and the internet transformed society in the past, AI is now emerging as the defining technology of our time with the power to redefine entire industries, economies, and communities.
“With our new facility, Pelagos Data Centres is laying the foundation for the next era of AI-driven innovation, positioning Gibraltar as a strategic hub and enabling Europe’s brightest minds to unlock the full potential of this revolutionary technology.”
Chief Minister Fabian Picardo adds, “I am delighted that Pelagos Data Centres have decided that Gibraltar is the place to establish their first facility and that the whole community will benefit from their massive investment and its huge economic impact.
“I look forward to this project becoming a reality as soon as possible.”
Jobs, efficiency, and sustainability
The development is expected to create up to 500 jobs during construction and around 100 permanent positions once operational. Pelagos currently employs 50 full-time staff across London and Gibraltar, and plans to expand its local workforce significantly.
The facility will be built to Tier III standards, carrier-neutral, and designed to serve both public and private sector clients. It will pursue international certifications covering information security, quality, sustainability, and energy management, with a targeted Power Usage Effectiveness (PUE) of 1.2 or better.
The project’s sustainability strategy includes powering operations with a combination of renewable energy and liquefied natural gas (LNG), with the aim of achieving net-zero operational emissions by 2030.
Cooling systems will be designed to minimise water use, and the company is exploring heat recovery options to support community projects.
Sir Joe Bossano, Minister for Economic Development and Inward Investment, says, “This is the most significant infrastructure investment in Gibraltar since the early 1990s, when the GSLP Government brought state-of-the-art telecommunications as inward investment from the United States and made possible the creation of a centre for online services. Then, we future-proofed Gibraltar’s economy. Today, we are doing so again.
“The technology of the future – on which every advanced economy will depend – will be artificial intelligence. AI requires data, processing power, and energy resources on a scale never before seen.
“The Ministry for Economic Development will put all its resources at the service of this initiative to ensure that it is delivered in the shortest possible time. In this field, speed of delivery is everything. Gibraltar should be the fastest jurisdiction on the planet when it comes to delivery.”
A further technical briefing and press conference is planned for the first quarter of 2026, ahead of construction beginning later that year.
