GIBRALTAR, Sept. 5, 2025 /PRNewswire/ -- A major data centre that will deliver up to 250 megawatts (MW) of capacity by 2033 is to be built in Gibraltar by Pelagos Data Centres.

Announced today at a launch event at the offices of the Chief Minister of Gibraltar, Hon. Fabian Picardo, the state-of-the-art facility is expected to attract investment of approximately £1.8 billion. The facility will be constructed in five phases at a 20,000 square meters site near the Port of Gibraltar. It is the largest current development project in the territory by value and among the largest in its history.

Funded entirely by private investment and backed by the Government of Gibraltar, the Pelagos Data Centres Project represents a transformative step for the territory's digital and economic landscape. It will also make an important contribution to meeting Europe's demand for data centre capacity, positioning Gibraltar as a significant new node in Europe's digital infrastructure that can serve the broader needs of the UK and continental Europe. This comes at a pivotal moment, as AI's rapid adoption across industries is reshaping digital infrastructure needs, creating significant demand for scalable, high-performance data centres capable of supporting complex and compute-intensive workloads.

The first stage of the project is scheduled to become operational in late 2027, with subsequent phases to follow at approximately 18-month intervals. The data centre will be powered independently of Gibraltar's existing power grid and the site will feature a public leisure facility, providing a valuable amenity for the local community.

Mr. Konstantin Sokolov, Chairman of Pelagos Data Centres, said: "The scale of this project marks a new chapter for Gibraltar and for Europe's digital capabilities. Just as electricity and the internet transformed society in the past, AI is now emerging as the defining technology of our time with the power to redefine entire industries, economies, and communities. With our new facility, Pelagos Data Centres is laying the foundation for the next era of AI-driven innovation, positioning Gibraltar as a strategic hub and enabling Europe's brightest minds to unlock the full potential of this revolutionary technology."

Chief Minister of Gibraltar Hon. Mr. Picardo said: "I am delighted that Pelagos Data Centres have decided that Gibraltar is the place to establish their first facility and that the whole community will benefit from their massive investment and its huge economic impact. I look forward to this project becoming a reality as soon as possible."

The economic benefit to Gibraltar of the Pelagos Data Centres project is expected to be substantial. Up to 500 jobs will be created during construction of the centre, with around 100 permanent positions upon its completion. The company currently employs 50 full-time staff in London and Gibraltar, with plans to hire and train local staff extensively for operational roles. The project will also stimulate demand for local services, support the growth of Gibraltar's digital and technology sectors and enhance the territory's and the wider region's attractiveness as a destination for international business and investment.

The facility is the first to be developed by Pelagos Data Centres and will be built to Tier III standards as defined by the independent Uptime Institute organisation, ensuring high availability and reliability. It will be carrier-neutral, offer services to both public and private sector clients, and will pursue leading international certifications for information security, quality management, environmental sustainability, and energy management. It intends to achieve a Power Usage Effectiveness (PUE) of approximately 1.2 or better, reflecting a commitment to high energy efficiency.

Sustainability is central to the Pelagos Data Centres project. From day one, the facilities are expected to be powered by a combination of renewable energy and liquefied natural gas (LNG), with a goal of achieving net-zero operational emissions by 2030. Advanced air and liquid cooling systems will be used to minimise water usage, and the company is in talks about initiatives to recover or repurpose heat from the data centre for use by community projects in Gibraltar.

Emphasising the importance of the project the Minister for Economic Development and Inward Investment, the Hon. Sir Joe Bossano, said: "This is the most significant infrastructure investment in Gibraltar since the early 1990s, when the GSLP Government brought state-of-the-art telecommunications as inward investment from the United States and made possible the creation of a centre for online services. Then, we future-proofed Gibraltar's economy. Today, we are doing so again.

"The technology of the future - on which every advanced economy will depend - will be Artificial Intelligence. AI requires data, processing power, and energy resources on a scale never before seen. The Ministry for Economic Development will put all its resources at the service of this initiative to ensure that it is delivered in the shortest possible time. In this field, speed of delivery is everything. Gibraltar should be the fastest jurisdiction on the planet when it comes to delivery."

Joining Mr. Picardo, Mr. Sokolov and Sir Joe Bossano at the official launch event was Mr. Christian J.A Ryan, President for Gibraltar Operations for the Pelagos Data Centres Project; and Mr. James Levy KC and Mr. Tony Provasoli, senior partners at Hassans International Law Firm.

A further technical briefing and press conference will be arranged for the first quarter of 2026, in line with the estimated start date for construction of this project. This will provide further information about the engineering, design, and implementation phases.

About Pelagos Data Centres

Pelagos Data Centres combines advanced engineering, modular scalability and environmental responsibility to help meet the demands of today's rapidly evolving digital landscape. With offices in London and Gibraltar, it currently employs around 50 staff.

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