EDP and MERLIN Edged join forces to drive clean energy for data center in Portugal
EDP, a global leader in the renewable energy sector, and MERLIN Properties (“MERLIN”), the Iberian Peninsula’s leading real estate and infrastructure company specializing in the development, acquisition and management of commercial real estate assets and data centers (through MERLIN Edged), have signed a partnership to supply clean energy to Portugal’s first carbon-neutral data center campus. This campus is currently under development by MERLIN Edged in the municipality of Vila Franca de Xira, approximately 20 kilometers from Lisbon.
This collaboration aims to meet the growing demand for renewable energy solutions to power technological infrastructures. EDP plans to implement the largest single-site decentralized solar energy project in its history to supply energy to these data centers, with solar plants that may reach up to 100 MWp of installed capacity.
The two companies intend this to be a significant step toward establishing the Iberian Peninsula as a leading digital and technology hub in Europe. This partnership strengthens both companies’ commitment to the transition toward sustainable solutions. According to the International Energy Agency, electricity demand from data centers is expected to more than double over the next five years.
The decentralized solar energy project that EDP intends to develop will be complemented by other long-term energy supply solutions, enabling MERLIN Edged to access renewable electricity 24/7. As a result, the campus will be powered by its own energy, with numerous additional benefits, including greater energy efficiency, reduced operating costs, enhanced energy independence, and a significant contribution to reducing carbon emissions in the region. This approach allows companies to optimize their energy supply and reduce costs, while simultaneously supporting national sustainability targets.
The data center and renewable energy projects are being developed in parallel. Thanks to the close collaboration between the two companies, the solar installation's capacity and benefits will be maximized, and clean energy supply will be ensured from day one of the campus's operation.
“The rapid expansion of Artificial Intelligence is fueling a global surge in data center development, unlocking significant economic and employment opportunities. These large-scale infrastructures require a robust, reliable and affordable energy supply—further accelerating the demand for renewable energy projects. The Iberian Peninsula is especially well-positioned to lead this growth, thanks to its strong capabilities, abundant renewable resources, and competitive energy pricing. MERLIN-Edged’s new data centers will be powered by a renewable, efficient, and dependable energy supply—an area where EDP is fully prepared to deliver. This is yet another example of EDP’s commitment to being a key partner in the decarbonization journey of major technology companies”, said Miguel Stilwell d’Andrade, CEO of EDP.
“We are facing a clearly growing market, driven by rapid technological evolution and high digital consumption. This has sharply increased the demand for data centers, amid a supply shortage that requires agile and responsible development. The challenge is to do this sustainably and efficiently, in a sector traditionally intensive in energy and water use. As a demonstration of our commitment, our data centers have net zero water consumption for cooling and use 67% less energy for these systems compared to the European average. We are proud to announce this partnership with EDP, which guarantees a sustainable energy supply and helps position Portugal as a reference market in the data center field,” said Ismael Clemente, CEO of MERLIN
Present in four global regions with energy transition solutions for all types of businesses, EDP is a global leader in long-term renewable energy contracts (Power Purchase Agreements), with over 15 GW contracted with companies in the tech sector and beyond. More than 20% of these PPAs have been signed with technology companies. In decentralized solar projects, EDP has already contracted over 3 GWp, making it the European leader in this segment.