By Sergio Goncalves LISBON, Feb 26 (Reuters) - Portugal's largest utility EDP is moving to supply the boom in data centre projects in Iberia, attracted by electricity prices that are set to remain low
EDP targets Iberia data centre surge with low-cost power, CEO says
By Sergio Goncalves
EDP’s Strategy for Iberia’s Data Centre Demand
LISBON, Feb 26 (Reuters) - Portugal's largest utility EDP is moving to supply the boom in data centre projects in Iberia, attracted by electricity prices that are set to remain low compared with much of Europe, CEO Miguel Stilwell de Andrade said on Thursday. He said over 18 gigawatts of data centre projects in development or in the pipeline in Portugal and Spain "will support the strong electricity demand already in Iberia," driven by structural, not temporary, factors.
"EDP is obviously engaging with many of these projects," the CEO said at a conference with analysts.
"Iberia has a distinctive advantage, which we expect to benefit from - structurally affordable power prices," he said, adding that this is crucial for these projects.
Partnerships to Supply Renewable Power
On Wednesday, EDP signed a partnership to supply renewable power to the 1.2-GW data centre that Start Campus — a consortium of Britain's Pioneer Point Partners and U.S. fund Davidson Kempner - is developing in Sines, 150 kilometres (93 miles) south of Lisbon.
Iberian Electricity Demand Trends
Electricity demand rose 3.6% in Portugal and 2.8% in Spain in 2025, outperforming most EU markets, where average growth was just 0.4%, Stilwell de Andrade said.
EDP Sees 2% Annual Demand Growth Through 2030
EDP is projecting 2% annual growth in Iberian demand through 2030, supported by "electrification of transport, industry, beyond data centres," Stilwell de Andrade said.
Industrial Power ~17% Below EU Average
Price Advantage Versus EU Average
Due to the large deployment of wind and solar parks in Iberia, the EDP CEO said electricity prices for industrial customers in the region are around 17% below the EU average.
Tariff Debt Fully Repaid by 2028
Regulatory and Tariff Outlook
Portugal and Spain have "several structural factors that will help keep electricity prices low", he said, including the full repayment by 2028 of the electricity systems tariff debt, which has weighed on consumer bills.
Tariff Structure Cost Reductions Ahead
"That means there will be significant cost reductions in the tariff structure going forward," he said.
Pre-Tax Returns on Networks: Portugal and Spain
New regulatory frameworks guarantee pre-tax returns of 6.7% on electricity network investments in Portugal through 2029, and 6.58% in Spain through 2031, "giving EDP clarity and stability for the next investment cycle," Stilwell de Andrade said.
(Reporting by Sergio Goncalves in Lisbon; Editing by Bill Berkrot)
