A new data center is planned in Pego, Portugal.

The Abrantes City Council has approved a series of tax exemptions valued at €16.2 million ($19.1m) to facilitate the construction of a data center in the industrial zone of Pego, some 150 km (93.2 miles) northeast of Lisbon.

As reported by the Portuguese newspapers Médio Tejo and Mais Ribatejo, the project is promoted by the company EDC One and could see investment reach €7 billion ($8.2bn) by 2030.

The data center would be located on the site of RPP Solar, a solar panel factory that failed to reach commercial operations, and next to the former Pego coal-fired power plant.

The approval of the incentives was unanimously granted by the municipal executive of the town council on September 2, although with reservations from the opposition regarding the developer’s recent creation and investment capacity.

EDC One was founded in June 2024 in the Portuguese municipality of Maia as a real estate management company. The company changed its profile in August of this year to focus on the design, construction, operation, and maintenance of data centers and telecommunications infrastructure.

The president of the city council chamber, Manuel Jorge Valamatos, described the plan as a “project of national interest” that will represent an “investment never seen before in the region,” according to Médio Tejo.

The city council clarified that the three approved tax exemptions (IMI, IMT, and Derrama) will only come into effect if EDC One’s investment materializes. In addition, the project still needs other final government approvals.

This piece was automatically translated from DCD’s Spanish site and edited by a member of DCD’s editorial staff.