Start Campus and EDP: A New Paradigm for Green Data Centres

Start Campus and EDP have signed a memorandum of understanding that could hardwire renewable energy into Portugal’s next wave of data centre developments.

The partnership centres on the SINES Data Campus, a 1.2GW development on the country’s Atlantic coast, which is billed as one of Europe’s largest and most sustainable data ecosystems.

Start Campus, backed by Davidson Kempner Capital Management, has previously put the total combined investment for the Sines campus at around US$9.96bn.

The agreement states that EDP will become Start Campus’ preferred long‑term partner for green energy solutions, with the two companies working together on technical, commercial and strategic options to bring new renewables online in step with demand from large‑scale computing.

The growing role of renewables in data centres

The development of renewable energy is the central pillar of this agreement. The companies believe that renewables could be the key to meeting increased demand, establishing stability and improving the resilience of the grid.

The accord also formalises EDP’s role as Start Campus’ go‑to partner for green power and creates a framework to explore further cooperation in Sines, across Portugal and potentially in other markets.

EDP’s Head of Hydrogen and Data Centres, Ana Quelhas, comments: "Electricity demand from data centres is rising rapidly – in Europe alone, we expect around 70 TWh 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 focus on additional generation is significant in a European market where data centre projects increasingly run into grid bottlenecks, especially in legacy hubs like Dublin, Frankfurt and London.​

By coupling new data capacity with dedicated renewable projects, both companies hope to position Sines as a proving ground for what they describe as “energy‑aligned” digital infrastructure.

Can Sines offer a blueprint?

The SINES Data Campus is designed as a multi‑building site with 1.2GW of IT power at full build‑out and grid access already secured, targeting high‑density cloud, AI and high‑performance computing workloads.

Start Campus says the campus will run on 100% renewable energy and will be engineered for a power usage effectiveness of 1.1, supported by seawater‑based cooling that aims for a water usage effectiveness of zero.

Robert Dunn, CEO of Start Campus, suggests that the new partnership is about aligning that digital ambition with the realities of the power 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 be supported financially by Davidson Kempner, which has more than US$37bn in assets under management. The firm sees the framework as part of a broader bet on large‑scale digital infrastructure.

“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.”

Since the announcement last week, EDP's CEO Miguel Stilwell d'Andrade has spoken publicly about the partnership.

On an analyst call tied to EDP's 2025 results, he was explicit that the agreement with Start Campus is centred on gaining forward visibility into demand volumes large enough to justify building new renewable generation. Rather than drawing on existing grid capacity, the partnership is designed to trigger dedicated clean energy build-out.

"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 gives the project a great starting point from which to build.

Renewables supplied around 68% of the country’s electricity consumption in 2025, according to transmission system operator REN, a record level that reinforces Portugal’s status as one of Europe’s leaders in renewable integration.

That headline number, however, masks Portugal’s ongoing dependence on natural gas and imports, which together still covered nearly a third of demand.​

As the capacity of the Sines campus grows, questions will inevitably be asked about how far additional data centre load can be absorbed without crowding out other consumers or driving up energy prices.

Start Campus and EDP have addressed this, saying that their collaboration will help to ensure long‑term price stability and reduce reliance on international imports. That said, the specifics of any new generation or grid reinforcement have yet to be detailed.​

Beyond one campus

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.