Pelagos Data Centres has initiated construction on a new 250MW data centre in Gibraltar, marking a significant development for the region.
The project is set to be the largest development project in Gibraltar by value, with an anticipated investment of approximately £1.8bn ($2.43bn).
The ground-breaking ceremony took place at the offices of the chief minister, Fabian Picardo.
The event was also attended by Pelagos Data Centres chair Konstantin Sokolov, Gibraltar Minister for Economic Development and Inward Investment Sir Joe Bossano, and other stakeholders involved in the project.
Sokolov said: “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.”
Privately funded and supported by the Government of Gibraltar, this project is intended to position Gibraltar part of Europe's digital infrastructure, serving both the UK and continental Europe.
The first phase of the data centre is expected to be operational by late 2027, with subsequent phases projected to follow at 18-month intervals.
The project is expected to create up to 500 construction jobs and approximately 100 permanent positions once operational.
Pelagos Data Centres, which currently employs 50 staff in London and Gibraltar, plans to recruit and train local workers for these roles.
Designed to Tier III standards, the facility will be carrier-neutral, serving both public and private sector clients, and will seek international certifications for security, quality, and sustainability.
The centre is designed to achieve a Power Usage Effectiveness of 1.2 or lower, showing a high level of energy efficiency, the company said.
This centre will use a combination of renewable energy and liquefied natural gas from the start, with a target of net-zero operational emissions by 2030.
Cooling systems will be employed to reduce water usage, and discussions are underway to explore community projects that could use heat recovered from the data centres.
The data centre will operate independently of Gibraltar's existing power grid and will include a public leisure facility for community use.
