EDP, Start Campus align on €8.5bn Sines green data hub

Start Campus and EDP have agreed a partnership framework for renewable-powered data centre development across Iberia, starting with the 1.2 GW SINES Data Campus in Portugal.

Under a memorandum of understanding, EDP will become Start Campus's preferred long-term energy partner. The plan is to match new renewable generation to rising demand from large-scale computing, rather than relying on existing grid capacity.

The agreement links one of Portugal's largest data centre projects with one of Europe's largest renewable electricity producers. It also brings in financial backer Davidson Kempner, which supports Start Campus.

Sines focus

SINES Data Campus is a multi-building development on Portugal's Atlantic coast with a planned 1.2 GW of IT power at full build-out. Start Campus has previously estimated the combined investment value at €8.5 billion.

The site offers powered shell, turnkey, and build-to-suit options. It is positioned for high-density computing workloads, including AI, and the design includes liquid cooling.

Start Campus says the campus uses 100% renewable energy and targets a power usage effectiveness (PUE) of 1.1. It is also targeting a water usage effectiveness (WUE) of 0, which it links to the use of ocean cooling.

EDP's role focuses on electricity supply and developing new renewable solutions tied to the data centre build-out. Next steps include technical and commercial discussions under the framework.

Energy alignment

Portugal already has a high share of renewable power in its electricity system. The companies cited about 68% of electricity consumption coming from renewables in 2025.

The agreement sets out three areas of cooperation: accelerating renewable energy development linked to growth in digital demand; work on grid resilience and long-term system stability; and collaboration at Sines, with potential future data centre developments across Portugal and other markets.

The partnership comes as European policymakers and network operators assess how to accommodate additional electricity demand from data centres, electrified transport, and industrial decarbonisation. Developers have also highlighted constraints created by long grid connection queues in several markets.

Ana Quelhas, Head of Hydrogen and Data Centres Business Unit at EDP, pointed to the scale of expected demand growth. "Electricity demand from data centres is rising rapidly - in Europe alone, we expect around 70 TWh of additional consumption by 2030. EDP is ready to support the development of digital infrastructure that can scale reliably and sustainably, leveraging on our strong capabilities in renewable electricity and energy management."

Quelhas added: "EDP's background and track record in clean energy development, combined with Start Campus' expertise in developing world-class data centres, form a robust foundation to deliver renewable-powered digital infrastructure at scale, in Portugal."

Start Campus CEO Robert Dunn said the company sees energy planning and digital infrastructure planning as inseparable. "This partnership framework reflects a shared conviction that digital infrastructure and renewable energy must be developed together, at scale and with long-term system resilience in mind."

Dunn said Sines is the starting point for a wider approach. "By aligning Start Campus' platform vision with EDP's energy leadership and global experience supporting hyperscale digital infrastructure, we are laying the foundations for an integrated approach to digital growth - starting in Sines and extending across the country - that supports customers, strengthens the energy system and delivers sustainable economic value."

Investor backing

Davidson Kempner, which backs Start Campus, said it supports the partnership. Daniel Boehm, Partner and Co-Head of the European Corporates Team, said: "Davidson Kempner is pleased to support this strategic alignment as part of our long-term commitment to building resilient digital infrastructure platforms."

Boehm added: "The framework between Start Campus and EDP reflects the type of forward-looking collaboration required to enable scalable, energy-aligned digital infrastructure, underpinned by sustainability and long-term investment discipline."

EDP operates across renewable generation, electricity networks, and energy management, with activities spanning Europe, North America, South America, and Asia Pacific. More than 90% of its generation comes from renewable sources, and it has a net-zero target for 2040.

The next phase of work will cover technical, commercial, and strategic discussions on renewable solutions linked to growing digital demand, with an emphasis on grid resilience, long-term price stability, and reduced reliance on cross-border electricity imports.