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Portugal well-positioned for growth in the data centre sector

Beatrice by Beatrice
December 9, 2021
in Data Centres, news
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Portugal is on track to become one of the major data centre hubs in Europe, according to a report by Savills. 

The study by the international real estate consultancy, presented recently in an online broadcast, concludes that this sector is set to expand at both a national and European level in the coming years.

Savills analysis estimates that by 2026 the global data centre market will reach a value of $251bn, with an average annual growth of 4.5%. This growth will be driven by the consolidation of the Internet of Things (IoT), the increased use of virtual and augmented realities, and the spread and strengthening of fifth-generation technologies, the now well-known 5G.

During the COVID-19 pandemic there was an increase in online traffic in EMEA of over 35%, with some areas reaching figures 90% higher than before the pandemic.

Given these transformations, data centres will need to be large enough to meet current and estimated needs, said Savills. In addition, as these infrastructures become stronger and energy needs increase, a stronger focus on the energy efficiency of these facilities, as well as their environmental sustainability, will be required.

In Portugal, the data centre segment is made up of small or micro-spaces, with most companies in Portugal keeping this type of infrastructure within their own premises. But with an increasing number of companies seeking data storage solutions outside their facilities Savills predicts this will change.

In Portugal, 46% of all data centres are concentrated in the Lisbon region. At national level there are eight major data centre operators: Equinix, Colt, AR Telecom, Claranet, NFSI, Altice, NOS and PT Empresas. The small portfolio of data centre operators in Portugal gives this segment great growth potential.

Alexandra Gomes, Head of Research at Savills Portugal, comments: ”The Portuguese data centre market is establishing itself on the European map. Portugal, with good connectivity, access to energy and security will certainly attract more investment in data centres.”

Scott Newcombe, Head of EMEA Data Centres at Savills, says: “One of the main trends of 2021 is the growing interest in data centres in secondary markets, among which Portugal is included, expanding from the main European hubs: Frankfurt, London, Amsterdam and Paris.”

Tags: 5GCOVID-19Data CentreseuropegrowthIoTportugalSavillsStudy
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