Start Campus & EDP: Building a Green Data Centre Future

Start Campus and EDP have signed a memorandum of understanding to embed renewable power directly into the fabric of Portugal’s fast‑growing digital infrastructure landscape.

The collaboration is anchored around the SINES Data Campus – a 1.2GW hyperscale development on the Atlantic coast, positioned to become one of Europe’s most advanced and energy‑efficient technology hubs.

Supported by Davidson Kempner Capital Management, Start Campus has previously estimated total investment in the Sines project at approximately US$9.96bn.

Under the agreement, EDP will serve as Start Campus’ preferred long‑term partner for sustainable power solutions.

Together, the companies will explore technical, commercial and strategic pathways to align renewable generation with the escalating energy demands of AI‑driven and high‑performance computing environments.

The growing role of renewables in data centres

Renewable energy development forms the cornerstone of this agreement, with both companies viewing clean power as critical to supporting escalating data demand, ensuring grid stability and reinforcing energy resilience across digital infrastructure networks.

The accord also cements EDP’s position as Start Campus’ primary partner for sustainable energy solutions, establishing a framework for broader collaboration not only within Sines but also across Portugal – and potentially extending into emerging international markets.

EDP’s Head of Hydrogen and Data Centres, Ana Quelhas, says: "Electricity demand from data centres is rising rapidly – in Europe alone, we expect around 70TWh 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.”

That emphasis on new power generation is particularly relevant in a European landscape where data centre expansion is increasingly constrained by grid congestion – most notably in established hubs such as Dublin, Frankfurt and London.

By integrating fresh data capacity with dedicated renewable energy developments, the two companies aim to position Sines as a testbed for what they describe as “energy‑aligned” digital infrastructure – a model designed to scale sustainably with the needs of next‑generation computing.

Can Sines offer a blueprint?

The SINES Data Campus is being developed as a multi‑facility ecosystem delivering 1.2GW of IT capacity at full build‑out, with grid access already secured to support high‑density cloud, AI and high‑performance computing environments.

According to Start Campus, the site will operate entirely on renewable energy and is being designed for a market‑leading power usage effectiveness (PUE) of 1.1.

Its seawater‑based cooling system is engineered to achieve a water usage effectiveness (WUE) of zero, setting new benchmarks for sustainability in hyperscale operations.

Start Campus CEO Robert Dunn says the partnership with EDP reflects a shared commitment to align the company’s digital growth objectives with the evolving realities of the energy system.

“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,” he says.

“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”.​

The project will receive financial backing from Davidson Kempner Capital Management, which manages more than US$37bn in assets worldwide.

The investment firm views the partnership framework as part of a wider strategic commitment to accelerating large‑scale digital infrastructure and energy‑efficient data ecosystems.

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

“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.”

Following the announcement last week, EDP CEO Miguel Stilwell d’Andrade publicly outlined the strategic aims of the partnership.

Speaking during an analyst call linked to EDP’s 2025 results, he said the agreement with Start Campus is focused on securing long‑term demand visibility at a scale sufficient to justify new renewable generation projects.

Rather than relying on existing grid capacity, the collaboration is structured to directly drive the development of dedicated clean‑energy assets aligned with hyperscale data growth.

"This opens up the possibility of creating additional value from our existing assets and operations, while giving us greater visibility into future demand volumes, which could support the development of a renewable energy project," he says.

Portugal’s grid under scrutiny

Portugal’s power system provides a strong foundation for the project’s next phase of growth.

In 2025, renewables accounted for around 68% of the nation’s electricity consumption, according to transmission operator REN – a record level that underscores Portugal’s position as a European frontrunner in renewable energy integration.

That milestone figure, however, masks the country’s continued reliance on natural gas and imported power, which together still supplied nearly one‑third of total demand.

As the Sines campus scales its capacity, industry observers are already questioning whether Portugal’s grid can absorb additional data centre load without constraining other users or putting upward pressure on energy prices.

Start Campus and EDP have sought to address those concerns, emphasising that their partnership is designed to support long‑term price stability and reduce exposure to imported energy.

Even so, the exact details of new generation assets or grid reinforcement measures have yet to be confirmed.

Beyond one campus

While Sines remains the focal point of the initiative, both companies stress that the memorandum of understanding is designed as a springboard for broader collaboration.

Beyond the SINES Data Campus, Start Campus and EDP plan to explore additional sites across Portugal suited to renewable‑integrated data infrastructure, with an eye to expanding into other regions where clean‑energy potential aligns with the rising demand for digital capacity.

The agreement arrives as European policymakers debate stricter standards around data centre efficiency, location and grid impact – at a time when operators face intensifying scrutiny from customers and investors to substantiate their net‑zero strategies.

For now, the Start Campus–EDP alliance stands as a tangible example of integrated development, where data centres and renewable generation evolve in parallel, rather than as separate, after‑the‑fact considerations.

While Sines is the anchor of the operation, the two companies are clear that the MoU is intended as a platform for wider collaboration.

Alongside their work on the SINES Data Campus, the firms hope to explore other opportunities for similar renewable‑linked data centre developments elsewhere in Portugal.

Over time, they expect to move into other markets where there is both a strong potential for renewables and an appetite for digital infrastructure.

The agreement comes at a moment when European policymakers are weighing tighter rules on data centre efficiency, location and grid impact, and when operators are under growing pressure from customers and investors to demonstrate credible decarbonisation plans.​

For now, the Start Campus‑EDP partnership offers a case study in joined-up thinking, where data centres grow in tandem with renewables, rather than using them as a bolt-on after the fact.