Digital Realty Enters Portugal, Strengthening Southern Europe's Digital Backbone
MWN-AI** Summary
Digital Realty (NYSE: DLR), the largest cloud- and carrier-neutral data center platform globally, has announced its entry into the Portuguese market with the acquisition of a data center facility in Lisbon. This strategic move not only expands the company’s international data center footprint but also reinforces its commitment to enhancing connectivity across crucial markets, particularly in Southern Europe. The new facility in Lisbon is expected to support an IT load of up to 2.4 MW and will provide vital interconnection capabilities, capitalizing on its connections with multiple strategic network service providers.
Portugal is rapidly gaining traction as a digital hub, bolstered by significant investments in subsea cable infrastructure that connect Europe with several global regions including North America, South America, Africa, the Middle East, and Asia. Lisbon, positioned as Europe’s Atlantic gateway, offers low-latency connectivity to the Americas, making it a strategic location for data flows. Previously, these subsea deployments were handled through Madrid; however, the Lisbon facility will help reduce latency and improve customer access to subsea infrastructure.
The proximity of the new data center to submarine cable landings in Carcavelos will facilitate landing solutions and hosting for subsea cable equipment, enhancing resilience and diversity for the Lisbon market. Digital Realty intends to develop this site further as a hub for interconnected communities and enhance its scalable solutions in the region. The acquisition complements existing facilities in Madrid and Barcelona, creating a robust interconnected platform across the Iberian Peninsula. As AI workloads continue to reshape data dynamics globally, Lisbon is set to emerge as a pivotal gateway for next-generation infrastructure, facilitating seamless data movement across international markets.
MWN-AI** Analysis
Digital Realty's entry into the Portuguese market represents a strategic pivot that could significantly enhance its competitive standing in Southern Europe. By acquiring a data center facility in Lisbon, the company not only expands its footprint but also leverages Portugal's advantages as a burgeoning digital interconnection hub. As the only European location with direct subsea connectivity to South America, Lisbon is uniquely positioned for low-latency data transmission, which is increasingly critical in a world increasingly dependent on cloud services and AI workloads.
Investors should note that this expansion aligns with broader trends in the data center industry, as the demand for reliable and scalable digital infrastructure continues to rise. The integration of Lisbon into Digital Realty's portfolio strengthens interconnectivity not just within Europe, particularly with additional ties to Africa, but also globally. This positions Digital Realty to attract enterprises looking for resilient and high-performance data solutions right at the nexus of South American and African networks.
Moreover, with a readiness for service anticipated by early 2027, this timely initiative should bolster revenue growth as enterprises expand their technological capabilities to meet demand. The interconnections with the company’s existing facilities in Spain—especially its campuses in Madrid and the upcoming Barcelona site—create a robust regional network that can effectively support a range of digital services including AI and cloud offerings.
Given Digital Realty’s commitment to innovation and scalability, coupled with its proven business model and vast network, this is a prime moment for investors to consider the company's stock. The growth trajectory post-expansion may provide significant upside potential, particularly as firms increasingly seek efficient and reliable data solutions moving forward.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
LONDON, March 04, 2026 (GLOBE NEWSWIRE) -- Digital Realty (NYSE: DLR), the world’s largest cloud- and carrier-neutral data center platform, today announced its entry into Portugal through the acquisition of a data center facility in Lisbon. This expansion enhances the company’s global data center footprint and reinforces its commitment to enabling seamless connectivity across key international markets.
The Lisbon facility is expected to support up to 2.4 MW of IT load and represents a critical addition to Digital Realty’s Southern European footprint. Multiple strategic network service providers are already connected to the facility, underscoring its immediate interconnection value. Located on the Iberian Peninsula, Portugal is rapidly emerging as a key global digital and interconnection hub, supported by extensive industry investment in subsea cable infrastructure that connects Europe with North America, South America, Africa, the Middle East, and Asia.
Lisbon serves as Europe’s Atlantic gateway, offering low-latency connectivity to the Americas and reinforcing the continent’s transcontinental data routes. Previously, subsea-related deployments were routed through Digital Realty’s facilities in Madrid; however, by establishing a facility in Lisbon, Digital Realty will reduce latency and bring its customers closer to the subsea cable landing infrastructure. The city is uniquely positioned as the only location in Europe with direct subsea connectivity to South America, while also acting as a gateway hub for West Africa and adding diversity to the Mediterranean subsea network. Today, 16 subsea cables land in Portugal, the majority near Lisbon.
“Adding Portugal to our portfolio represents a key piece of our Iberian strategy,” said Paula Cogan, Managing Director EMEA, Digital Realty. “With its unique subsea connectivity and position as Europe’s Atlantic gateway, Lisbon adds meaningful diversity and resilience to regional data flows, while simultaneously complementing our existing presence in Madrid and Barcelona. This expansion strengthens interconnection across our platform and gives customers unparalleled choice and agility as they scale their businesses globally.”
Digital Realty’s selected site will be the closest data center to the submarine cable landings in Carcavelos, enabling it to support landing solutions and host termination equipment for subsea cable infrastructure. This strategic location brings enhanced infrastructure resilience and diversity to the Lisbon market while meeting growing demand for secure, scalable, and low-latency digital infrastructure.
Digital Realty’s Lisbon data center will be interconnected via subsea cables with the company’s campuses in Accra, Ghana; Lagos, Nigeria; and Cape Town; South Africa, further strengthening digital corridors between Europe and Africa. In addition to the acquired facility, which is expected to be ready for service in early 2027, Digital Realty is laying the groundwork for long-term scalability through future expansion and campus development plans, creating a hub for connected communities and an expanded interconnection ecosystem.
Digital Realty’s entry into Portugal will complement its established presence in Spain, where the company operates four data centers in Madrid, the primary inland digital hub of Southern Europe, and expects to launch service in Barcelona in mid-2026, a key Mediterranean gateway with strong subsea connectivity to Africa, the Middle East, and beyond. Together, Lisbon, Madrid, and Barcelona form the most interconnected regional platform in the Iberian Peninsula, driving seamless global data flows and creating a best-in-class Southern European digital ecosystem.
The rapid growth of AI workloads is reshaping global data flows, and Lisbon is emerging as a natural gateway between continents. Anchored by its access to major subsea cable systems and regional connectivity, the city is well positioned to host next-generation AI infrastructure, supporting scalable data movement and distributed inference across international markets.
About Digital Realty
Digital Realty brings companies and data together by delivering the full spectrum of data center, colocation, and interconnection solutions. PlatformDIGITAL®, the company’s global data center platform, provides customers with a secure data meeting place and a proven Pervasive Datacenter Architecture (PDx®) solution methodology for powering innovation, from cloud and digital transformation to emerging technologies like artificial intelligence (AI), and efficiently managing Data Gravity challenges. Digital Realty gives its customers access to the connected data communities that matter to them with a global data center footprint of 300+ facilities in 55+ metros across 30+ countries on six continents. To learn more about Digital Realty, please visit digitalrealty.com or follow us on LinkedIn and X.
For Additional Information
Media Contacts
Will Reynolds
Digital Realty
+44 7469 695775
wreynolds@digitalrealty.com
Investor Relations
Jordan Sadler / Jim Huseby
Digital Realty
+1 (214) 231-1350
InvestorRelations@digitalrealty.com
Safe Harbor Statement
This press release contains forward-looking statements which are based on current expectations, forecasts and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially, including statements related to the company's development plans, company strategy, including its strategy in the Mediterranean, and customer demand. For a list and description of risks and uncertainties, see the reports and other filings by the company with the U.S. Securities and Exchange Commission. The company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
FAQ**
How does Digital Realty Trust Inc. DLR plan to leverage its new data center in Lisbon to enhance its competitive position in the Southern European digital ecosystem?
In what ways will Digital Realty Trust Inc. DLR's acquisition of the Lisbon facility impact the existing network infrastructure and operations in Madrid and Barcelona?
What specific strategies will Digital Realty Trust Inc. DLR implement to attract clients to its Lisbon data center, considering the emerging trends in AI and digital transformation?
Can you explain how Digital Realty Trust Inc. DLR intends to ensure the scalability and resilience of its Lisbon facility in the context of increasing global data flow demands?
**MWN-AI FAQ is based on asking OpenAI questions about Digital Realty Trust Inc. (NYSE: DLR).
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