“Lisbon is home to a thriving tech scene, including many of Europeās fastest-growing start-ups”
My friends and family all know that I appreciate good food. And in my experience, some of the best tasting dishes in the world have the simplest recipes. I would like to borrow this culinary theme to propose three key ingredients that make a thriving digital hub in 2024, and outline why Lisbon has them in perfect measure.
Ingredient #1: Compute
Of Portugalās 33 data centres at the beginning of this year, 20 were in Lisbon.[1] According to Baxtel, at least five new data centres are currently under construction in the city (two of which are AtlasEdge facilities – more on that later).
With strong data centre infrastructure comes fast, reliable internet for local businesses and residents. The average fixed internet connection speed in Portugal increased by 844% between 2016 and 2024. Likewise, the country gained two more IXPs during that time, seeing a 414% jump in IXP traffic in Lisbon alone ā driving network density and data gravity in southern Europe while reducing latency.
One of the main tech and infrastructure drivers for Portugal is its incredible underwater connectivity. And in fact, Portugal is one of only a few countries that connects directly to every populated continent via submarine cable.[2]
Lisbon stands out from other European digital hubs by offering direct subsea cable connections to South America, with further connections to the US East Coast and Africa coming down the line. Googleās transatlantic Nuvem cable, set to go live in 2026, will connect South Carolina with Bermuda and Portugal, while Googleās Equiano and Metaās 2Africa cables will connect Lisbon to Africa. Meanwhile, the Medusa cable system will link Egypt and Lisbon. DE-CIX reported that subsea cable projects landing in Portugal will reach 115 cable landing stations globally.
Ingredient #2: Capital
Lisbon is home to a thriving tech scene, including many of Europeās fastest-growing start-ups. The Portuguese Trade & Investment Agency (AICEP) reports that more than 2,500 startups are registered in Portugal, including six unicorns and upwards of 160 certified accelerators and incubators. The venture capital ecosystem in Portugal has risen by a factor of 15 between 2017 and 2021, with investments in local startups hitting a record of ā¬1.5 billion.
Fueled by its exceptional quality of life, safety, favorable climate, and business-friendly environment, Lisbon emerged as a key target for Siemens. In 2014, the global technology company entered the Lisbon market with the launch of its Lisbon Tech Hub (LTH) ā an IT center designed to spearhead innovation and accelerate the companyās digital transformation.
Beginning with only 40 employees, Siemens LHM has rapidly expanded to over 1,300 specialists, creating innovative tech solutions to address current and future global challenges. This remarkable growth is a reflection of Lisbonās prominence as a leading tech hub with the ability to draw top talent on a large scale.
Itās no surprise that the worldās largest tech companies now converge on Lisbon each year for the mammoth Web Summit event, bringing together 70,000+ attendees to discuss the most exciting tech opportunities and challenges on the planet, from AI to quantum computing. After all, tech trends are driving unprecedented capacity demand and investment right in Lisbon.
Ingredient #3: Power
With that demand comes the need for power. Even there, where most other countries are struggling to even come close to fulfilling business need, Portugal shows unusual promise.
Thatās because Portugal enjoys a unique blend of geographic elements that allow renewable energy sources to thrive, including rainfall, seacoast, plenty of sunshine and a topography that drives wind.[3] Of the countyās electric production, 61% is derived through renewable sources, including 24% from wind and 23% from hydro. Having successfully attracted global leaders in renewable energy, Portugal benefits from an estimated ā¬5.2 billion in its renewablesā contribution to GDP.
With the arrival of AI, data center power demand is expected to rise 10-30% globally over the next five years[4]. For the future of our planet, our industry must focus on developing digital infrastructure in markets prioritizing green energy.
And to bring it all togetherā¦
Talent. At the heart of every thriving digital ecosystem is its people. Lisbon boasts a highly educated, multilingual workforce thatās ambitious, adaptable and agile. Portugalās investment in education, particularly in STEM fields, has cultivated a strong talent pipeline, attracting major global tech players and fostering innovation. This talent pool is not only skilled but also committed to the cityās continued growth as a tech hub, positioned to support global enterprises and scale startups alike. From engineers to entrepreneurs, Lisbonās talent base is the backbone of its digital transformation.
AtlasEdge + Lisbon
As you can see, it wasnāt a tough decision for AtlasEdge to invest further in Lisbon. In April of this year, we announced our entry into the Portuguese market with the acquisition of two adjacent data centre sites in Lisbon. Once launched, our new Lisbon data centres will deliver more than 20MW of IT load. Thatās only the first stage of our strategic plan for Portugal ā a market in which weāve decided to invest more than ā¬500 million.
As part of our Lisbon investment, weāre proud to serve as a founding partner and headline sponsor of the inaugural Atlantic Convergence event, taking place October 1-3 in Lisbon. Enterprises, institutions and providers will come together within one of the most exciting markets in the world for our fast-evolving digital economy.
During the opening keynote, Iāll explore how Lisbon is bridging continents with digital infrastructure. I hope to see you there!
By Tesh Durvasula, AtlasEdge CEO
