×

Portugal readies strict water, energy rules for data centre boom

By Thomson Reuters Nov 3, 2026 | 8:59 AM

By Sergio Goncalves

LISBON, Nov 3 (Reuters) – Portugal will require data centres to be powered by renewable energy and use water-free ​cooling technologies or alternative water sources ‌so as not to compromise household and business supplies, Environment Minister Maria da Graca Carvalho said on Tuesday.

The country is emerging as a European data centre ‌hub, ​with more than 2.6 ⁠gigawatts under development, led ⁠by the 1.2-GW Start Campus project in Sines, backed by Microsoft AI infrastructure investments.

Data centres have faced growing opposition worldwide from ​environmental groups and communities concerned about their heavy electricity and water usage.

Carvalho said ⁠the government was finalising ⁠a decree under which data centres ​would face “stringent requirements on water use” and a “very ​rigorous” environmental review.

“We’ll require projects to either ‌have a cooling technology that does not require fresh water, because that is already possible, or a water solution that does ⁠not conflict with water supplies for the general population and other socio-economic activities,” she told a parliamentary ⁠hearing.

Data centres ‌would be required to run ⁠on renewable energy, which operators ​can buy  ‌from utilities, given Portugal’s abundant ​solar, wind ⁠and hydropower resources, she said.

Start Campus has one of six planned buildings already in operation, and it runs on renewable energy and uses a seawater cooling system.

(Reporting by Sergio Goncalves; editing by ​Andrei Khalip)