Jakarta, INTI - Portugal’s largest utility, EDP (EDP.LS), is actively positioning itself to supply the surge in data centre projects across Iberia, attracted by electricity prices that are expected to stay relatively low compared with much of Europe, CEO Miguel Stilwell de Andrade said on Thursday.
He noted that over 18 gigawatts of data centre projects in development or planning in Portugal and Spain “will support the strong electricity demand already in Iberia," driven by long-term structural factors rather than temporary trends.
"EDP is obviously engaging with many of these projects," the CEO added at an analyst conference.
"Iberia has a distinctive advantage, which we expect to benefit from, structurally affordable power prices," he said, emphasizing that low costs are crucial for these developments.
Renewable Partnership and Rising Electricity Demand
On Wednesday, EDP signed a partnership to supply renewable energy 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 south of Lisbon.
Electricity demand grew 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 noted.
EDP forecasts 2% annual growth in Iberian electricity demand through 2030, supported by the "electrification of transport, industry, beyond data centres," according to the CEO.
Structural Cost Advantages and Regulatory Stability
Thanks to the large-scale deployment of wind and solar farms in Iberia, Stilwell de Andrade said industrial electricity prices in the region are about 17% below the EU average.
Portugal and Spain benefit from "several structural factors that will help keep electricity prices low," he added, including the full repayment by 2028 of the electricity systems tariff debt, which has previously affected consumer bills.
"That means there will be significant cost reductions in the tariff structure going forward," Stilwell de Andrade noted.
New regulatory frameworks ensure 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," he said.
Conclusion
EDP is strategically leveraging Iberia’s structurally lower power prices and regulatory stability to capture growing demand from data centre investments, positioning itself for sustained long-term growth in the region’s evolving energy landscape.
Read more: DG Matrix Secures $60 Million to Enhance Intelligent Power Solutions for Data Centers