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EDP and Merlin Power Lisbon’s First Carbon-Neutral Data Center

July 24, 2025

EDP and Merlin Power Lisbon’s First Carbon-Neutral Data Center

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The partnership between Portuguese utility EDP and real estate firm Merlin marks a pivotal moment in the evolution of sustainable technology infrastructure. This collaboration aims to power Lisbon’s new data center campus with 100 percent renewable energy, setting a precedent as the first carbon-neutral data center in Portugal. The initiative is spearheaded by Merlin alongside U.S.-based Edged Energy and highlights a broader trend towards decarbonization across Europe. The project’s backbone is a large-scale decentralized solar project capable of producing nearly 100 MWp, ensuring a consistent supply of renewable energy. This ambitious undertaking not only aligns with global sustainability agendas but also reflects a growing consensus on reducing carbon footprints while meeting technological demands.

Advancing Renewable Energy Solutions

The state-of-the-art data center, located in Vila Franca de Xira, features five centers designed to deliver 180 MW of power and integrates advanced energy-efficient and water-conserving technologies. EDP and Merlin have laid out plans for expansion that could boost capacity to 300 MW, demonstrating their commitment to long-term sustainability goals. Key features include the usage of cutting-edge technologies for efficient power usage, which helps in minimizing energy consumption while optimizing operational efficiency. By integrating these technologies, the project aims to mitigate the environmental impact typically associated with large data facilities. This focus on energy efficiency and reduced water usage exemplifies the commitment to resource optimization within the rapidly evolving tech landscape.

Strategic Importance for the Iberian Peninsula

Establishing this groundbreaking data hub in Lisbon highlights the keen strategic importance for both EDP and Merlin, while further strengthening the Iberian Peninsula’s status as a rising digital and technology hub in Europe. This collaboration showcases the dedication of both companies to promote sustainability, drawing on EDP’s rich expertise in creating sustainable energy solutions. The center’s potential to attract substantial technological investments can cultivate an environment where digital innovation aligns with environmental responsibility. As this project advances, it provides valuable insights on integrating large-scale infrastructures to benefit the overarching drive for a sustainable future. The creation of Lisbon’s first carbon-neutral data center is a remarkable step towards sustainable technological infrastructure. Focusing on renewable energy, EDP and Merlin are reducing environmental impact and bolstering the Iberian Peninsula’s role in the digital era. This alliance offers a model for similar initiatives worldwide, emphasizing a commitment to ecological responsibility and innovation within technology-driven industries.

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