It‘s all in the clouds
My journey into the world of data centres kicked off in a rather amusing ‘blonde moment’. Picture this: a Friday night, a well-deserved glass of wine, and casual chit-chat with friends. I met Davide, an engineer working on a large data centre. “Oh yes, I’ve heard of those,” I responded. “But what data are they storing?”
Davide’s enlightening reply was, “Imagine what you store in the cloud. Where do you think that is?” I took another sip of wine and thought about it. “Well, they are in the sky, aren’t they?”
After Davide had finished laughing, he informed me that our photos do not float in the ether. Instead, our treasured memories and documents reside in colossal hubs of metal boxes, which are becoming a huge focus of investment in the modern world.
Thanks to Davide and his connections, I was able to set up a Zoom call with the Chief Marketing Officer at Start Campus. But it turns out that this facility is not just any old data centre. Start Campus is constructing a 1.2 GW hyperscale campus, meticulously designed for AI, cloud, and high-performance computing workloads. The initial building, SIN01, is already operational, and with an additional 180 MW facility set to break ground later this year, the future is looking electrifying!
This groundbreaking project will feature Europe’s most sustainable data ecosystem, boasting market-leading global connectivity. The campus will be entirely powered by renewable energy, aiming for a Power Usage Effectiveness (PUE) of 1.1 and an ambitious Water Usage Effectiveness (WUE) of zero, championing the cooling abilities of the ocean. To cap it off, Start Campus is committed to achieving Net Zero across its operations.
I had the pleasure of speaking with Omer Wilson, who guided me through this hitherto unknown tech terrain. Omer brings over a decade of experience, having previously worked with Digital Realty in London and Singapore, the world’s largest data centre provider. And if none of the above made any sense to you read on and all will be explained!
The energy dilemma
Our conversation began amid headlines about the recent power outage in the Iberian Peninsula. Omer shared his insights: “Globally, energy grids are under strain as they transition to sustainable sources. I’m sure this incident will lead to extensive discussions on prevention across Europe.”
When I asked how such outages might affect data management, Omer reassured me: “Not at all. Even when our phones weren’t working, everyone’s data remains protected with backup generators.”
He did however, emphasise the crucial role data storage plays, especially in emergencies. “In my previous role, London’s Commissioner Blair highlighted data centres as a priority after emergency services. In a crisis, secure data is as vital as securing water supplies.”
What are data centres?
So, what exactly is data storage? According to Omer, it’s akin to the bulky home computers of the 1990s but massively scaled up in secured facilities. “It’s not just about storage; it’s also about processing,” he explains. The dot-com boom gave birth to an industry where large tech companies began outsourcing their data needs to dedicated facilities.
Data centres are essentially secure facilities leased by tech companies to house and operate their servers. Traditionally, large organisations like banks and telecoms maintained their own data centres, but there has been a significant shift towards outsourcing this infrastructure.
These facilities not only store data but also process it, which has become increasingly power-intensive with the rise of artificial intelligence (AI). As Omer explains, “In recent years, these sites have grown considerably. Five to ten years ago, facilities typically ranged from 10 to 20 megawatts. Our campus, set to be the largest in Europe, has a capacity of 1.2 gigawatts – representing about eight per cent of Portugal’s total energy consumption. This substantial energy demand is largely driven by the need to train AI models, which require powerful processors and servers.”
As AI technology continues to advance, the need for efficient and robust data centres is more critical than ever.
What makes Start Campus unique?
Start Campus was founded just four years ago, primarily funded by Davidson Kempner, a top New York hedge fund, with a minority investment from Pioneer Point, a UK-based firm. Remarkably, there’s no government funding, but the project is recognised as a national critical infrastructure initiative for Portugal.
Their first building, SIN01, is already running at 30+ MW, with plans for six buildings by the completion date in the early 2030s, amounting to a staggering total investment of €8.5 billion, the largest ever international investment in Portugal.
Portugal´s existing data centres typically operate below 15 megawatts, mostly around population hubs such as Lisbon and serve the Portuguese domestic market. Start Campus will offer a home for AI and ‘GPU-as-a-Service’ providers, enabling International companies to access AI processing without the need to invest in their own infrastructure. Omer elaborates, “This service facilitates AI training, allowing companies to process extensive data to develop and refine their models.”
Coal to green
Data centres have the fundamental problem of how to power and cool down all those black boxes, which produce a huge amount of energy, which requires water cooling rather than air conditioning.
“Coal to green” generally refers to the transition from using coal as an energy source to using renewable energy sources. The facility is adjacent to the now closed-down power station, which is being decommissioned. Soon, they will take down the two funnels and the rest of the building but Start Campus is reusing its extensive seawater infrastructure.
“In a similar way to how a coal plant puts in seawater, we’re doing the same. We’re cooling our facilities using seawater and returning it to the sea once it’s at a safe temperature – a sustainable solution that dramatically reduces our carbon footprint and water usage. This is a unique aspect of this project as well, and that’s why this location in Sines made a lot of sense,” elaborates Omer.
Why is Portugal Ideal for Data Centres?
Portugal is emerging as a prime location for data centres, thanks to its exceptional connectivity and competitive power costs. The Medusa Submarine Cable System, expected in 2025, will link countries across approximately 8,700 km, while Google’s Cloud cable is set to connect Portugal to the USA in 2026.
Omer emphasises the significance of Portugal’s geographical connectivity: “Portugal has the unique advantage of connecting to every continent via subsea cables, which is crucial for our facility and its customers.”
Portugal offers lower power costs comparable to those in Scandinavia, making it a more attractive option than Central and Western European cities like London and Paris. Additionally, its renewable energy mix, exceeding 80% and moving towards 90%, appeals to companies focused on sustainability. As Omer notes, “This is a big benefit for our customers, along with a well-educated, English-speaking local workforce.”
Traditional financial hubs such as London, Paris, and New York have become saturated and are struggling with power availability, prompting investors to seek alternatives. Omer states, “In the past, London has always been a key data centre location due to its financial status, but the lack of land is now an issue.”
Spain is also gaining traction in the data centre market; nonetheless, the Sines site will be a significant step-up for Portugal, Omer explains, “Our customers are tech companies serving the US and Europe, needing to conform to EU data regulations that often require data processing within the EU jurisdiction.”
The Impact on local employment
Portugal’s strategic location, favourable energy costs, and sustainable practices position it as an ideal destination for significant data centre investments but they don’t directly employ a huge number of people. “They’re not factories, they’re digital factories,” observes Omer. “You’re talking maybe 50 to a 100 max full-time on-site and then you have the customer engineers, which boosts that figure to over a hundred. However, the construction phase will employ eight to nine thousand people as a rough estimate, a lot of those will be from within Portugal.”
The Start Campus team comprises over 65 internationally diverse members. The CEO is Australian, with a strong Irish contingent, as well as representation from the UK and Spain. However, more than 50% of executives, construction leaders, and other key roles are Portuguese. Their corporate offices are located in Lisbon, where Omer is based.
A view of the future
At the conclusion of my interview with Omer, I am reminded of the feeling of walking out of a university lecture after an intense hour of trying to make notes about a subject I am struggling to understand. However, unlike my university days of trying to understand the past, this topic has provided an insight into a future governed by AI and tech. It has slightly blown my mind!
So, this is what the future looks like. And it’s happening here in Portugal.
Start Campus Key Facts
- Up to 200kW per rack support for dense AI workloads
- Total campus will support 1.2GW of IT load, over six different buildings
- 100% renewable energy, grid-secured
- Zero water consumption — cooled with repurposed seawater
- Carrier-neutral, AI-native architecture
- Modular construction for fast, scalable deployment
- Proximity to multiple subsea cables: connecting to North America, South America, Africa, and the Middle East
