Portugal Bets Big on Data Centers and Tech to Move Beyond Tourism in 2025

• Why Is Portugal Shifting from Tourism to Tech?
• How Does Sines’ Geography Give Portugal an Edge?
• What’s the Local Reaction to These Mega-Projects?
• Can Portugal Really Compete with Europe’s Tech Hubs?
• FAQs: Portugal’s Tech Revolution

Portugal is pivoting from its sun-and-sand economy to become a European tech hub, with a €8.5 billion data center project in Sines leading the charge. Backed by giants like Microsoft and Nvidia, the initiative aims to diversify the economy—but locals worry about infrastructure gaps and housing shortages. Here’s the inside scoop on Portugal’s high-stakes tech gamble.

Why Is Portugal Shifting from Tourism to Tech?

For decades, Portugal’s economy has leaned heavily on tourism, with its golden beaches and historic cities drawing millions annually. But in 2025, the government is doubling down on tech to reduce seasonal volatility. The crown jewel? The Start Campus data center in Sines, a €8.5 billion (US$9.9 billion) megaproject set to be one of Europe’s largest. It’s already signed tenants like Nvidia and Microsoft, with plans to run entirely on renewable energy by 2030.

How Does Sines’ Geography Give Portugal an Edge?

Sines isn’t just another coastal town—it’s a data traffic goldmine. Its submarine cables LINK Europe to Africa, Brazil, and soon South Carolina (thanks to a new Google-backed connection). "This isn’t just about servers; it’s about geopolitics," notes a BTCC analyst. The old power plant’s infrastructure, like seawater cooling pipes, is even being repurposed for the data center, cutting costs and carbon footprints.

What’s the Local Reaction to These Mega-Projects?

Locals are skeptical. The 1970s industrial boom left Sines with a refinery and ghost-town vibes after workers fled post-revolution. Now, the government promises 5,000 jobs from three projects: the data center, a €2 billion Chinese CALB battery factory, and a port expansion. But housing is scarce, and promised rail links to Spain are years behind. "They told us for decades there wasn’t enough traffic for a highway," grumbles port chief Pedro do Ramos. "Now there’s too much."

Can Portugal Really Compete with Europe’s Tech Hubs?

With incentives like €350 million in subsidies for CALB, Portugal’s betting big. The battery plant alone aims to power 200,000 EVs yearly by 2028. But critics point to sluggish infrastructure—freight trains still crawl at 30 mph, and Sines lacks passenger rail. "We’re building the plane mid-flight," admits Economy Minister Manuel Castro Almeida, who calls Sines "the heart of Portugal’s economic transformation."

FAQs: Portugal’s Tech Revolution

What’s the timeline for the Start Campus data center?

The first building launched in March 2025, with five more planned by 2030. All six will run on renewables.

How much foreign investment is Portugal attracting?

Projects in Sines total 4.6% of Portugal’s GDP, including CALB’s factory and Singapore’s port expansion.

Why are locals worried?

Housing prices jumped 40% since 2023, and public services haven’t kept pace with growth.