Pelagos reveals GBP £1.8 billion AI data centre plan for Gibraltar

Pelagos Data Centres has announced plans to develop a 250MW data centre in Gibraltar, a project expected to attract investment of approximately GBP £1.8 billion.

Large-scale infrastructure

The new facility, set to be built on a 20,000 square metre site near the Port of Gibraltar, will be constructed in five phases through to 2033. It is anticipated to become one of the largest infrastructure projects in Gibraltar's history. Designed from the outset to support artificial intelligence (AI) and cloud computing demands, the centre is planned to operate independently from Gibraltar's main power grid and aims to achieve net-zero operational emissions by 2030.

The project is funded entirely by private investment and is backed by the Government of Gibraltar. Construction on the first stage is scheduled to be completed and operational in late 2027, with each subsequent phase following in roughly 18-month intervals.

Job creation and economic impact

Up to 500 construction jobs are expected to be created during the build-out phase. Upon completion, around 100 permanent positions will be available. The project is also forecast to stimulate local businesses and service providers, while increasing the territory's attractiveness to international investors. Pelagos Data Centres currently employs 50 staff in London and Gibraltar, with further local recruitment and training planned as operations ramp up.

Chief Minister of Gibraltar, Hon. Mr. Fabian Picardo, said:

"I am delighted that Pelagos Data Centres have decided that Gibraltar is the place to establish their first facility and that the whole community will benefit from their massive investment and its huge economic impact. I look forward to this project becoming a reality as soon as possible."

Strategic digital hub

Pelagos Data Centres believes its facility will help address Europe's rapidly increasing demand for high-performance data centre capacity, particularly as AI adoption accelerates across industries. The company aims to position Gibraltar as a significant connectivity point within Europe's digital infrastructure, serving both the UK and continental European markets.

Mr. Konstantin Sokolov, Chairman of Pelagos Data Centres, described the development as a "new chapter for Gibraltar and for Europe's digital capabilities."

"The scale of this project marks a new chapter for Gibraltar and for Europe's digital capabilities. Just as electricity and the internet transformed society in the past, AI is now emerging as the defining technology of our time with the power to redefine entire industries, economies, and communities. With our new facility, Pelagos Data Centres is laying the foundation for the next era of AI-driven innovation, positioning Gibraltar as a strategic hub and enabling Europe's brightest minds to unlock the full potential of this revolutionary technology."

Sustainability priorities

The facility will incorporate a mix of renewable power and liquefied natural gas (LNG) from inception, with an objective of achieving net-zero operational emissions within five years of opening. Advanced cooling systems will be deployed to minimise water usage, and the company is in discussions concerning the potential for heat recovery for local community projects.

The site will also include a public leisure facility, to be shared with Gibraltar's residents as an amenity.

Technical specifications

The data centre will be constructed to Tier III standards, as defined by the Uptime Institute, to ensure high availability and reliability. The design will be carrier-neutral, offering services to both public and private sectors, and aiming for certifications covering information security, quality management, environmental sustainability, and energy management. The company targets a Power Usage Effectiveness (PUE) of approximately 1.2 or better.

Official support

The project enjoys support from Gibraltar's Government. The Minister for Economic Development and Inward Investment, the Hon. Sir Joe Bossano, said:

"This is the most significant infrastructure investment in Gibraltar since the early 1990s, when the GSLP Government brought state-of-the-art telecommunications as inward investment from the United States and made possible the creation of a centre for online services. Then, we future-proofed Gibraltar's economy. Today, we are doing so again."

"The technology of the future - on which every advanced economy will depend - will be Artificial Intelligence. AI requires data, processing power, and energy resources on a scale never before seen. The Ministry for Economic Development will put all its resources at the service of this initiative to ensure that it is delivered in the shortest possible time. In this field, speed of delivery is everything. Gibraltar should be the fastest jurisdiction on the planet when it comes to delivery."

Further information about the technical and operational phases of the project is expected to be shared at a planned briefing ahead of construction starting in 2026.