A new large-scale data center campus is coming to Gibraltar.

Pelagos Data Centres this week announced plans to develop a 250MW project on the British territory.

The facility will be constructed in five phases at a 20,000 square meter (215,280 sq ft) site near the Port of Gibraltar.

The first stage of the project is scheduled to become operational in late 2027, with subsequent phases to follow at approximately 18-month intervals.

With an investment of £1.8 billion ($2.24bn), the project is the largest in the territory by value in its history. The development is backed by the Government of Gibraltar and funded entirely by private investment.

Pelagos said the data center will be powered independently of Gibraltar’s existing power grid via a combination of renewable energy and liquefied natural gas (LNG).

Konstantin Sokolov, chairman of Pelagos Data Centres, said: “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.”

The liquid- and air-cooled site will be built to Tier III standards and operate with a Power Usage Effectiveness (PUE) of approximately 1.2. The site will feature a public leisure facility. The company said it is in talks about initiatives to recover or repurpose heat from the data centre for use by community projects in Gibraltar.

Chief Minister of Gibraltar, Fabian Picardo, added: “I am delighted that Pelagos Data Centres has 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.”

Gibraltar is a British Overseas Territory and city located at the southern tip of the Iberian Peninsula, bordered by Spain. Gibtelecom operates two data centers in the area via its Rockolo unit, while gambling infrastructure firm Continent 8 also operates a facility within the Rock of Gibraltar. Gibfibre also operates a facility in Gibraltar.