Wedoany.com Report-Sept. 9, Pelagos Data Centres has started construction of a 250MW data centre in Gibraltar, representing the largest development project in the territory by value, with an estimated investment of £1.8 billion ($2.43 billion). The groundbreaking ceremony was held at the office of Chief Minister Fabian Picardo and attended by Pelagos Data Centres chair Konstantin Sokolov, Gibraltar’s Minister for Economic Development and Inward Investment Sir Joe Bossano, and other stakeholders.

The project is expected to create up to 500 construction jobs.

Sokolov stated: “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.”

The project is privately funded with support from the Government of Gibraltar and aims to integrate Gibraltar into Europe’s digital infrastructure, providing services to both the UK and continental Europe. The first phase of the facility is expected to be operational by late 2027, with additional phases to be completed at 18-month intervals.

Employment is a central focus of the development. Construction is projected to generate up to 500 jobs, and about 100 permanent positions will be available once the centre becomes operational. Pelagos Data Centres, which already employs 50 staff between London and Gibraltar, has announced plans to recruit and train local workers to meet staffing needs.

The facility is designed to Tier III standards and will be carrier-neutral, offering services to public and private sector clients. It will also pursue international certifications covering security, quality, and sustainability. A key technical feature of the project is its targeted Power Usage Effectiveness of 1.2 or lower, reflecting a strong commitment to energy efficiency.

From the outset, the centre will use a mix of renewable energy and liquefied natural gas, with the goal of achieving net-zero operational emissions by 2030. Advanced cooling systems will minimize water use, and the company is exploring options to apply recovered heat from the centre to community initiatives.

In addition, the facility will function independently of Gibraltar’s existing power grid, enhancing reliability. Plans also include the creation of a public leisure facility as part of the project, offering benefits beyond digital infrastructure.

This development highlights Gibraltar’s growing role as a digital hub for Europe, combining advanced technological infrastructure with local employment opportunities and sustainability objectives. With significant investment, international expertise, and government backing, the project is positioned to strengthen both Gibraltar’s economy and its place in the wider European digital landscape.