Portugal readies strict water, energy rules for data centre boom

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)