Major new data centre will attract £1.8bn investment, positioning Gib as strategic hub for AI future

A major new data centre that will attract investment of £1.8 billion through to 2033 will be built in Gibraltar by Pelagos Data Centres, positioning the Rock as a strategic hub as artificial intelligence redifines industries and increases infrastructure demands.

The project is funded entirely by private investment and has the support of the Gibraltar Government, which said it represents “a transformative step” for Gibraltar’s digital and economic landscape.

It will also contribute to meeting Europe’s demand for data centre capacity, positioning Gibraltar as “a significant new node” in Europe’s digital infrastructure that can serve both UK needs and continental Europe.

The Government highlighted too that the investment comes at a “pivotal moment” as the rapid adoption of artificial intelligence across many industries reshapes digital infrastructure demands.

Much of the demand will be focused on scalable, high-performance data centres capable of supporting complex and compute-intensive workloads.

The project will deliver up to 250 megawatts of capacity by 2033 and will be built in five stages, with the first phase to become operational in late 2027 and subsequent phases following at 18-month intervals.

The data centre, located on a 20,000 sq m site near the port, will be powered independently of Gibraltar’s existing power grid and the site will feature a public leisure facility for the community.

Announced after a launch meeting in No.6 Convent Place on Thursday, it is the largest project by value in Gibraltar and one of the largest in the Rock’s history.

“The scale of this project marks a new chapter for Gibraltar and for Europe’s digital capabilities,” said Konstantin Sokolov, chairman of Pelagos Data Centre.

“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.”

Mr Sokolov is an experienced entrepreneur and private equity investor who moved to the US in 1997 and is focused on the intersection of technology, finance and infrastructure.

He is also a philanthropist and just last April donated $100m to the University of Chicago in support of the Executive MBA Program at the Booth School of Business, where he studied.

The economic benefit to Gibraltar of the 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 bot Gibraltar and the wider region’s attractiveness as a destination for international business and investment, No.6 and Pelagos said in a statement.

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.

With a focus on sustainability, 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.

“As a proud Gibraltarian, I’m honoured to help drive the Pelagos Data Centres Project forward,” said Christian J.A Ryan, president of Gibraltar operations for Pelagos Data Centres.

“Expected to attract approximately £1.8 billion in investment this project will enhance Gibraltar’s economy by creating jobs and supporting local businesses.”

“It will also deliver new vibrant public spaces and amenities for both residents and visitors to enjoy every day.”

“With National Day just days away, the announcement of this project is a moment of celebration and pride.”

“This project is for all Gibraltarians, marking our emergence as pioneers in the industries of the future.”

Chief Minister Fabian Picardo added: “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 Minister for Economic Development and Inward Investment, Sir Joe Bossano, underscored the importance of the project.

“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,” Sir Joe said.

“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.”

The company expects to provide further information about the engineering, design, and implementation phases of the project in early 2026, in line with the estimated start date for construction.

Also present at the official launch were James Levy and Tony Provasoli, senior partners at Hassans International Law Firm.