How Start Campus and EDP Align Renewable Energy at Sines

Start Campus and EDP have signed a memorandum of understanding (MoU) aimed at aligning large-scale data centre development with new renewable energy generation in Portugal.

The agreement centres on the 1.2GW SINES Data Campus on Portugal’s Atlantic coast, a multi-building development backed by Davidson Kempner Capital Management.

Total combined investment in the campus has previously been estimated at around US$9.96bn.

Under the framework, EDP will become Start Campus’ preferred long-term partner for green energy solutions. The companies will assess technical, commercial and strategic options to bring new renewable capacity online in parallel with demand from hyperscale and AI workloads.

Renewables matched to digital load

The partnership reflects rising electricity demand from data centres across Europe, where grid bottlenecks have slowed projects in established hubs such as Dublin, Frankfurt and London.

Ana Quelhas, Head of Hydrogen and Data Centres at EDP, says: "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.”

By positioning Sines as an energy-aligned campus, the companies aim to connect new IT load with dedicated renewable projects.

The agreement also formalises EDP’s role as Start Campus’ go to green power partner and establishes a framework for potential cooperation beyond Sines.

Designing a 1.2GW AI-ready campus

The SINES Data Campus is designed for 1.2GW of IT power at full build-out, with grid access already secured. It targets high-density cloud, AI and high-performance computing deployments.

Start Campus has stated that the site will operate on 100% renewable energy and is being engineered for a power usage effectiveness of 1.1. Seawater-based cooling is intended to achieve a water usage effectiveness of zero.

Robert Dunn, CEO of Start Campus, says: “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.

“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”.

Financial backing comes from Davidson Kempner, which manages more than US$37bn in assets.

Daniel Boehm, Partner and Co-Head of the European Corporates Team at Davidson Kempner, says: “Davidson Kempner is pleased to support this strategic alignment as part of our long-term commitment to building resilient digital infrastructure platforms.

“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.”

Triggering new generation capacity

EDP CEO Miguel Stilwell d'Andrade has indicated that the partnership is designed to provide forward visibility on demand volumes sufficient to justify new renewable projects.

"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.

Miguel underlines that the intention is to stimulate dedicated clean energy build-out rather than draw from constrained grid capacity.

Portugal’s power system already sources around 68% of electricity consumption from renewables, according to transmission system operator REN. However, natural gas and imports still account for a significant share of supply.

As Sines scales towards its full 1.2GW capacity, scrutiny will focus on how additional load is integrated without increasing reliance on imports or driving up prices. 

Start Campus and EDP have stated that collaboration is intended to support long-term price stability and reduce dependence on international energy flows.

Beyond Sines, the MoU creates a platform to explore similar renewable-linked data centre developments elsewhere in Portugal and potentially in other markets where renewable potential aligns with digital infrastructure demand.