Strategic partnership to accelerate renewable-powered data center projects

Deal Analysis

Start Campus and EDP Renewables (EDPR) have formed a strategic partnership, backed by capital from Davidson Kempner, to develop renewable-powered data center projects in Portugal, with potential expansion to other markets. This partnership aims to accelerate the development of next-generation data centers, leveraging EDPR's renewable energy expertise and Start Campus's development capabilities. The collaboration signifies a growing trend of integrating renewable energy sources into data center infrastructure, driven by increasing demand for sustainable and cost-effective power solutions. The partnership's focus on Portugal is notable, given the country's favorable conditions for renewable energy generation and its strategic location within Europe. The planned 1.2 GW capacity indicates a significant investment and a commitment to large-scale data center development. Davidson Kempner's involvement as an investor further validates the project's potential and provides crucial financial backing. This deal could serve as a model for future collaborations between data center developers and renewable energy providers, particularly in regions with abundant renewable resources.

Strategic partnership between Start Campus and EDP Renewables (EDPR).
Capital backing from Davidson Kempner.
Focus on renewable-powered data centers in Portugal.
Planned capacity of 1.2 GW.

Market Context: The data center market is experiencing rapid growth, driven by increasing demand for cloud computing, data storage, and digital services. Simultaneously, there's growing pressure to reduce the environmental impact of data centers, leading to increased adoption of renewable energy sources and energy-efficient technologies. Portugal is emerging as a favorable location for data center development due to its renewable energy potential and strategic geographic location.

Source Intelligence

KEY DETAILS

Electricity demand from data centers is expected to increase by around 70 TWh of additional consumption by 2030 in Europe. Renewable energy supplied around 68 percent of electricity consumption in 2025 in Portugal. Quote: “Electricity demand from data centers is rising rapidly — in Europe alone, we expect around 70 TWh of additional consumption by 2030. Quote: Renewable energy is central to Portugal’s power system, already supplying around 68 percent of electricity consumption in 2025 and reinforcing the country’s position as a strong base for sustainable digital infrastructure in Europe.

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Deal Size

With a total combined investment value of an estimated €8.5bn, the campus utilises 100% renewable energy and targets an industry-leading PUE (Power Usage Effectiveness) of 1.1 and a WUE (Water Usage Effectiveness) of 0 by harnessing the cooling power of the ocean.

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Capacity

Start Campus is building and operating the SINES Data Campus, a 1.2 GW data center in Portugal, creating one of Europe’s largest and most sustainable data ecosystems with market-leading global connectivity.

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Location

initially anchored at the SINES Data Campus, reinforcing the country’s position at the forefront of Europe’s green digital and energy transition.

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Announcement

Wednesday 25, February 2026

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Signing

Start Campus and EDP today announced the signing of a strategic partnership marking their shared intention to accelerate next-generation, renewable-powered data center projects in Portugal, with potential expansion to other markets.

PARTIES MENTIONED IN SOURCE

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Start Campus developer

"Start Campus and EDP today announced the signing of a strategic partnership marking their shared intention to accelerate next-generation, renewable-powered data center projects in Portugal, with potential expansion to other markets."

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EDP developer

"Start Campus and EDP today announced the signing of a strategic partnership marking their shared intention to accelerate next-generation, renewable-powered data center projects in Portugal, with potential expansion to other markets."

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Davidson Kempner investor

"Davidson Kempner is pleased to support this strategic alignment as part of our long-term commitment to building resilient digital infrastructure platforms"

high quality Enriched Feb 25, 2026