U.S. investment fund Davidson Kempner and British investment firm Pioneer Point Partners will jointly invest up to €3.5 billion ($4.21 billion) in a large data center in Portugal – to be operational by 2025. This mega data center will have a total capacity of 450 MW.
The new to be built data center campus in Sines, 150 kilometers south of the capital Lisbon, will consist of five buildings with capacity to supply up to 450 MW of renewable energy to servers.
“Sines 4.0 will be one of the largest data center campus projects in Europe and will meet the rapidly growing demand of large international technology companies,” the funds jointly stated.
Trans-Atlantic Submarine Cables
Sines has a strategic position in Portugal as it is the place from which crucial high-speed Trans-Atlantic submarine cables depart to other continents. This includes for example Ellalink, which connects Europe to South America.
“Data has been identified as the new oil of the digital economy and Portugal will benefit from this major investment in Sines, which will put the country at the center of the transatlantic and global data network,” said Sam Abbu, founding partner of Pioneer Point Partners.
The EllaLink low-latency submarine cable system has already anchored in Sines, from where the connection to Latin America will be established. It is expected to become fully operational in the second quarter of 2021, providing “an unprecedented level of” international connectivity between the two continents, which will reach Europe through Portugal.
Reducing Network Latency
With an investment of 150 million euros, pointed out as one of the big bets for the Portuguese Presidency of the European Commission, EllaLink will open a ‘corridor’ for the transmission of data between the two continents, providing new opportunities to the European market. In addition to the first direct high-speed submarine cable connection between Europe and Latin America, the EllaLink system also includes several land routes that link strategic Data Centers in Lisbon, Madrid, Marseille, São Paulo, Rio de Janeiro and Fortaleza in partnership with Equinix and Interxion.
By creating the shortest direct networking route between Europe and Latin America, avoiding passage through third countries, EllaLink claims to reduce latency “by 50% compared to the current infrastructure, reaching a real value of less than 60ms between Portugal and Brazil.”
“Over the past two years we have been working very closely with different entities that made possible, and supported from the get-go, the arrival of the cable and the installation of EllaLink in Portugal,” said Philippe Dumont, CEO of EllaLink. “This cable connection strengthens the ties created and EllaLink will continue to contribute to international development, also boosting the location itself through the digital transformation of companies and organizations in Portugal.”