EDP to power 1.2 GW Sines data campus with renewables

Start Campus and EDP have agreed a partnership framework to develop renewable-powered data centres across the Iberian Peninsula, starting with the 1.2 GW SINES Data Campus in Portugal. The arrangement makes EDP Start Campus's preferred long-term energy partner and links new data centre build-outs with new renewable generation.

The memorandum of understanding focuses first on Sines, a coastal industrial area south of Lisbon that has become a focal point for large-scale data centre proposals. The partnership aims to match rising demand for digital infrastructure with new energy build-out, rather than relying solely on existing grid capacity.

Energy link

The framework has three main elements. First, it covers renewable energy development aligned with growing electricity demand from data centres. Second, it formalises EDP's role as Start Campus's preferred long-term partner for green energy solutions. Third, it sets out cooperation at Sines and potential future developments elsewhere in Portugal and, potentially, other markets.

The announcement comes as European policymakers and grid operators face questions about how to meet new electricity demand as artificial intelligence and cloud computing drive larger data centre designs. Portugal has positioned itself as a location that can combine renewable generation with new industrial loads, although projects still depend on local grid connections, planning decisions and the pace of new power supply.

Portugal generated about 68% of its electricity consumption from renewable sources in 2025, according to figures cited by the companies. EDP expects rapid growth in electricity use from data centres across the region.

"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", said Ana Quelhas, Head of Hydrogen and Data Centres Business Unit, EDP.

Sines focus

Start Campus is developing the SINES Data Campus, which it describes as a 1.2 GW site. The developer has estimated a total combined investment value of €8.5 billion and markets the campus as using 100% renewable energy.

The company said the design includes liquid cooling and is intended for AI-related workloads. It also cited efficiency targets, including a power usage effectiveness (PUE) of 1.1 and a water usage effectiveness (WUE) of 0, which it attributes to using ocean water for cooling.

For EDP, the partnership links a large prospective source of long-term demand with its renewable generation portfolio and energy management operations. EDP operates across Europe, North America, South America and Asia Pacific, and has described itself as producing more than 90% of its energy from renewable sources.

"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," said Robert Dunn, CEO, Start Campus.

Grid pressure

Across Europe, large data centre projects are facing tighter scrutiny over grid access and the pace of network upgrades. In several markets, grid operators have limited new connections or introduced queueing systems for large users. Developers are increasingly considering options such as onsite generation, long-term power purchase agreements and other structures that match demand with new supply.

Work under the memorandum will include technical, commercial and strategic discussions. The stated aim is to advance renewable solutions that can support rising data centre demand while strengthening grid resilience and long-term system stability. The companies also pointed to reduced reliance on cross-border imports as a potential outcome.

Davidson Kempner, an investor in Start Campus, also backed the framework. The investment firm manages more than USD $37 billion in assets and has offices including London, Dublin and New York.

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

The companies will explore cooperation for future developments beyond Sines as discussions progress.