Portugal approves National Data Center Plan

Portugal has adopted a new set of rules around data center development.

Portugal’s Council of Ministers has approved the National Data Center Plan (PNCD) and its 2026–2027 Action Plan, which were formalized on March 19, 2026, and published on April 13.

The initiative establishes guidelines to accelerate the sector’s development in the country, structured around four pillars aimed at reducing historical barriers to the advancement of data centers.

The regulation and governance pillar designates the Portuguese Agency for Investment and Foreign Trade (AICEP) as the single point of contact for investors, responsible for coordinating projects and facilitating decisions among public agencies. It also sets maximum deadlines for licensing processes.

The energy and infrastructure pillar provides for the identification of pre-zoned land with approved planning, basic infrastructure, and grid connections, in coordination with REN (National Energy Networks). The plan leverages mechanisms under Decree-Law 80/2023, which allows for the reallocation of unused grid capacity to high-demand projects, with priority given to data centers classified as Projects of National Interest.

The demand and market pillar creates conditions for direct state participation, through the Portuguese Development Bank, in projects considered strategic, reducing risks for private investors. It also provides for an AICEP portal with structured information on land, energy, regulatory timelines, and tax incentives.

Finally, the territory and ecosystem pillar requires that projects include concrete benefits for local communities and establish reversibility rules for the use of land and infrastructure at the end of the projects’ useful life.

Portugal views 2026 and 2027 as decisive periods for attracting major international hyperscale operators, who are currently defining their infrastructure strategies in Europe. Microsoft has already announced a large investment in Sines, in partnership with Start Campus, including the installation of more than 12,000 next-generation Nvidia GPUs, with operations scheduled to begin in early 2026.

From a project management perspective, the new legislation is significant primarily for what it eliminates. The pre-zoning of land allows site selection to progress from the feasibility phase to the commitment phase without relying on planning processes previously considered slow and uncertain. The creation of a single point of contact for investors reduces the need for direct coordination by developers, transferring part of that responsibility to the government. Meanwhile, maximum licensing deadlines provide predictability for project timelines.

Challenges such as grid connection timelines, construction costs, contractor availability, and technical due diligence stages remain present in large infrastructure projects. However, the new legal framework now keeps pace with the demands of major investors, which is considered essential for structuring development programs involving acquisition, planning, construction, and operation.

From a project management perspective, the PNCD does not eliminate all the complexity involved in data center development. Variables such as grid connection timelines, construction costs, contractor capacity, and technical due diligence phases remain—factors that can be managed by qualified leadership. The plan, however, removes obstacles that were beyond developers’ control and that hindered investment commitments in the country.

The legislation also includes professional services—such as engineering, legal, project management, and consulting—within the value chain that the government aims to strengthen. For companies operating in these areas, such as Maven, the integration of expertise under a single structure is seen as aligned with the sector’s needs, reducing barriers that previously required parallel solutions.

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