Executive Viability Abstract
This feasibility study evaluates the development of a state-of-the-art AI-optimized Cloud Data Center in Portugal, specifically targeting the Sines-Lisbon corridor. Leveraging Portugal's high renewable energy penetration (over 60%), strategic subsea cable landings (EllaLink, Equiano), and favorable climate, the project aims to provide high-density computing environments for AI training and inference. The study confirms high viability driven by the European AI Act compliance requirements and the increasing demand for localized, sovereign data sovereignty and sustainable digital infrastructure.
Return on Investment
22.5%
Payback Span
5.5 years
Net Present Value
€145,000,000
IRR Index
19.2%
## Market Analysis
Portugal is positioned as a primary gateway for data traffic between Europe, Africa, and South America. The market is currently shifting from standard colocation to high-density AI infrastructure. Key drivers include the 2030 Digital Compass targets and the expansion of the Sines 4.0 project. Competitive analysis indicates a gap in specialized liquid-cooled facilities capable of handling 50kW+ per rack required by modern GPU clusters (NVIDIA H100/H200).
## Capex Summary
Total estimated Capex for a 50MW facility is €450M.
- Land & Site Development: €45M
- Power Infrastructure & Substations: €85M
- Cooling Systems (Direct-to-Chip/Immersion): €70M
- Compute/Networking Hardware (AI-specific): €180M
- Construction & Security: €70M.
## Revenue Model
The project utilizes a hybrid revenue stream:
1. **Colocation Services:** Charging per kW for high-density rack space.
2. **GPU-as-a-Service (GPUaaS):** Hourly or monthly rental of compute clusters for AI training.
3. **Interconnection Fees:** Revenue from subsea cable cross-connects.
Projected Year 1 Revenue: €65M, scaling to €190M by Year 5.
## ROI Summary
The project demonstrates a strong ROI of 22.5% per annum once stabilized. The valuation is buoyed by the strategic asset value of the land and the long-term contracts (10-15 years) typical of hyperscale tenants. The 'Green Premium' on energy allows for a 15% markup on power resale due to REGO (Renewable Energy Guarantees of Origin) certificates.