Overview

According to recent figures from Portugal’s National Institute of Statistics (INE) and industry reports, the Portuguese ICT sector has become a critical pillar of the national economy, generating over $ 22.8 billion (€21.1 billion) in total turnover. It employs more than 147,000 professionals, making up 3.6% of the national workforce, and contributes nearly 10% to Portugal’s GDP. In the past decade, the profile of ICT companies has shifted from traditional ICT providers to highly specified and innovative startups. The sector is supported by world-class research developed in partnership with Portuguese universities. Portugal is positioning itself as a major European tech hub. This growth is further supported by a highly skilled talent base, competitive infrastructure, and increasing global investment interest.

Lisbon’s tech scene is bustling, and the city is one of Europe’s fastest-growing tech ecosystems, making a name for itself as Europe’s Silicon Valley. Lisbon won the 2023 European Capital of Innovation distinction, the European Union’s most important innovation award. Portugal has a very high proportion of STEM graduates and engineering talent at a competitive cost. According to Eurostat, the country has the third highest rate of Engineering graduates in the European Union, with around 90,000 students graduating each year.  In Lisbon, universities like Instituto Superior Técnico and Nova School of Science and Technology churn out hundreds of excellent developers every year. A very high English language proficiency overall is also a great plus.  Lisbon is a growing destination for digital nomads as well as remote programs. The city’s strong tech crowd cultivates an active coworking scene, providing a great environment to meet others and collaborate. Everyone from entrepreneurs, freelancers, and remote workers to digital nomads with diverse backgrounds and professions can come together. This contributes to Lisbon becoming a hub of entrepreneurial innovation and technology, with tech companies of all sizes and innovative startups setting up offices all over as the tech talent swarms the tech city.  

Lisbon is home to hundreds of tech events and meet-ups: The Web Summit, for example, is at the top of the list, bringing together all different tech talent profiles from startup founders, leadership teams of large companies, entrepreneurs, investors, and press journalists from around the world.  

According to the 2025 edition of the Digital Economy and Society Index (DESI), released as part of the EU’s State of the Digital Decade report, Portugal ranks 17th out of 27 Member States — a modest rise from its 2024 position. While this signals progress, the country continues to face mixed outcomes across key dimensions. Connectivity has improved, notably with better 5G coverage and broader access to fixed broadband, though Portugal still lags behind top-performing nations. In contrast, digital skills remain a critical weakness, falling below the EU average and demanding substantial investment to strengthen the population’s capabilities.
Portugal continues to demonstrate strong performance in digital public services, consistently ranking among the EU leaders in areas such as e-government and open data initiatives. 

E-government usage has risen to 57%, slightly below the EU average of 64%, yet Portugal outperforms in the availability of pre-filled online forms and digital services for both citizens and businesses. At the same time, businesses, particularly small and medium-sized enterprises, are steadily embracing digital technologies, with growing adoption of cloud solutions and artificial intelligence. These advancements have contributed to Portugal’s upward movement in the DESI rankings, reflecting incremental but meaningful progress. However, closing the digital gap remains a national priority, particularly in boosting digital skills across the population. This is a focal point of the country’s recovery and resilience plan (RRP), which supports targeted initiatives for different demographic groups and aims to meet the EU’s ambitious 2030 digital targets.

In 2020, Portugal approved the national action plan for the digital transition, prioritizing digital inclusion and training of people together with the digital transformation of businesses, public administration, and digitalization of education.  These objectives align with the Portuguese RRP’s digital transition strand, focusing on digital skills and digitization of businesses, public administration, and education. Portugal supports advanced technologies such as A.I., advanced computing, and open data. 

The United Nations Conference on Trade and Development (UNCTAD) confirms that Portugal maintained its 33rd position among 166 countries in the Readiness for Frontier Technologies Index in both 2024 and 2025.  Portugal nests innovation with infrastructure, human capital, and technology investments to enable technological development. The Government of Portugal has implemented measures to promote digital competencies and the digitalization of the economy as part of the second phase of Indústria 4.0, in addition to launching artificial intelligence and advanced computing strategies.  

The National Initiative for Digital Skills e.2030, Portugal INCoDe.2030, aims to stimulate and ensure the development of digital skills as a tool for paving the way for a future-oriented society focused on the new opportunities arising from the fast-paced adoption of Information and Communication Technologies. Portugal INCoDe.2030 is structured around five strategic pillars: inclusion, education, qualification, specialization, and research. Each of these pillars is associated with several public policy goals and measures to be implemented by several institutions and organizations. As for coordination, the Foundation for Science and Technology (FCT) plays a central role in managing and aligning the various measures under these pillars, ensuring coherence and impact across the initiative. Launched by the 21st Constitutional Government of Portugal, it involves collaboration across the ministries of Administrative Modernization, Science, Technology and Higher Education, Education, Labor, Planning and Infrastructure, and Economy, and aims to improve and strengthen Portugal’s position in the European Commission’s DESI Index (Digital Economy & Society Index), increasing its competitiveness by promoting digital skills. 

Startup Ecosystem

The Portuguese startup ecosystem is still young, but it’s one of the best assets Portugal has, with small-scale but fast-paced and steadily growing companies—and it’s earning serious recognition across Europe. The community continues to make strides toward attracting and retaining more international talent while forging partnerships with big corporations, making it easier than ever for startups to access markets throughout Europe and beyond.  In 2016, the Portuguese government galvanized the country’s startup ecosystem by creating Startup Portugal as part of a national strategy to foster entrepreneurship through increased structural support, funding, and internationalization efforts. 

Portugal has become a reference in the European startup scene, especially after hosting the Web Summit in 2016, putting the country on the map as the place to be for technology entrepreneurship.  The Web Summit has brought incalculable added value to the Portuguese economy, boosted the growth and diversification of ICT-related businesses in the country, and enjoyed solid political commitment from the Portuguese government and the Presidency of the Republic.

The Web Summit is the world’s premier high-tech conference and gathers policymakers, heads of states, CEOs and founders of unicorns and fast-growing startups. It features more than 1,200 speakers, 1,200 investors, 2,100 startups, 300 event partners, 2,500 journalists, 80,000 attendees, 160 countries and typically introduces disruptive new technologies and raises thoughtful meta-issues by industry experts across related fields, such as big data, education, enterprise, finance, health, lifestyle, machine, marketing, philanthropy, social and travel and e-commerce.According to the 2024 Startup & Entrepreneurial Ecosystem Report by Startup Portugal, the country is home to 4,719 active startups, a 16% increase from the previous year. These startups generate a combined $2.8 billion in turnover, support over 26,000 jobs, and show a strong international orientation, with 58% of their revenue coming from foreign markets. Institutional support from entities like Startup Portugal, Portugal Ventures, and AICEP provides funding, mentoring, and international exposure, while government incentives and visa programs make it easier for foreign founders to set up shop.

Portugal’s largest cities, Lisbon and Porto, are part of the Scale Cities Alliance. This collaboration among public ecosystem builders from 13 European cities aims to create Europe’s most connected technology hubs. Further, a national network of incubators makes it possible to start up and develop a concept with support even outside of the major hubs. With easy access to the European market and the Schengen Zone, Portugal has the potential to become one of the strongest startup economies in Europe.  

According to the 2025 Global Startup Ecosystem Index by StartupBlink, Portugal is ranked 29th, out of 110 countries, as best global startup ecosystem. All these initiatives are paying off. Portugal has produced seven unicorns to date: Sword Health, a world-renowned digital physiotherapy company; OutSystems, a low-code enterprise development platform; Feedzai, AI-powered fraud prevention for financial services; Talkdesk, a cloud-based contact center and AI software provider; Remote, a global HR solutions;  Anchorage,  a crypto custody and infrastructure solutions and Tekever, a drone technology company, newly crowned unicorn in 2025. Portugal’s seven unicorns are valued over $31.8 billion, with five based in the U.S. and all operating in the U.S. market. Portugal has one of the most significant numbers of unicorns per capita.  Many factors contributed to this, including the maturity and quality of the research environment in several scientific fields, the quality of higher education in technological and digital areas, and a growing number of highly qualified personnel, including those with PhDs. Companies also benefit from Portuguese R&D tax incentives, which have increased by 91% since 2015.

An open society and quality educational environment are woven together by government policy that actively encourages startup activity.  Popular incentives include Startup and Tech Visa programs, two options that fast-track residency for those bringing investment, talent, and innovation into the country. The Startup Voucher program is a Portuguese government initiative designed to help young entrepreneurs — especially recent graduates — turn their business ideas into reality. It’s promoted by IAPMEI and supported by Startup Portugal, with a strong focus on technology-based projects and sustainable innovation. In addition to its technical infrastructure, Portugal offers a rich network of institutional knowledge. A national network of over 160 incubators ensures that entrepreneurs can receive the support and resources they need to thrive. According to IDC’s Startup & Entrepreneurial Ecosystem Report, 65% of founders stated that they relied on incubator support during the early stages of their startups. Portugal has a competitive cost/value environment among its competitors within Europe. According to the 2024 Financial Times Europe’s Leading Start-Up Hubs ranking, Portugal has six incubators among the top 125 European innovation hubs. Two are among the top 10: Startup Braga (7th) and Startup Lisboa-Unicorn Factory (10th).

Portugal is the perfect beachhead for European expansion. Situated at the southwestern tip of Europe, Portugal is the ideal portal for startups looking to enter or expand into the continent, a market of over 500 million people.  As the closest European country to the U.S., Canada, and Brazil, doing business in Portugal also allows startups to sync with some of the world’s most prominent economies. Portuguese startups adopt an international-first strategy earlier in their lifecycle, which can be a more efficient path to success. Geographically efficient with world-class talent, communities, and infrastructure, Portugal is an unbeatable value proposition that startups worldwide would do well to consider. Portuguese startups look to international markets, primarily the European Market, taking advantage of the open economic zone.  Some startups even prioritize USA markets in their business plans and are born global. 

Artificial Intelligence

Portugal has rapidly positioned itself as a rising force in the European artificial intelligence landscape. With strategic investments, forward-thinking government programs, and a thriving startup ecosystem, the country is cultivating a responsible and innovation-driven AI environment. Lisbon and Porto serve as the primary hubs for AI development, each contributing distinct strengths to the national ecosystem. 

The Portuguese government has played a central role in shaping the country’s AI trajectory. The AI Portugal 2030 strategy, coordinated by INCoDe.2030, aims to integrate AI into education, public services, and research while promoting ethical and inclusive development. The AI Portugal 2030 Vision is based on seven pillars: 1. A safer, better, and evolved society: sustainability, resources management and employment. 2. Developing AI skills and digital mindsets in education, long-life learning and attraction of talent. 3. Promoting new jobs and an economy for AI services in various industries. 4. Fostering Portugal as a living lab for experimentation of new developments: urban development with sustainable cities, sustainable energy networks, bigger biodiversity, green and blue economy, cybersecurity, autonomous driving, quantum resources for AI and supercomputers. 5. Securing AI niche markets through key specialized services in Portugal. 6. Contributing to new knowledge and developments through AI research and innovation 7. Providing better public services for citizens and businesses, increasingly evidence-based by using the vast amount of data that can be available. 

In 2025, Portugal launched its first national Large Language Model (LLM), developed by, Portugal’s national funding agency for science, research, and technology (FCT) and the Agency for Administrative Modernization (AMA), and began building a dedicated AI Factory and computing infrastructure. These efforts are part of the broader National AI Agenda, which is now being operationalized under the country’s digital strategy. 

The Portugal 2025 Digital Decade Country Report, published by the European Commission, highlights Portugal’s steady progress toward the EU’s digital targets. In the private sector, AI adoption is accelerating. As of 2025, 41% of Portuguese businesses are using AI, up from 35% in 2024. A striking 94% of these companies report revenue increases, with an average growth of 30%. Startups are particularly active, with 62% integrating AI into their operations and 35% developing new AI-driven products. Key sectors benefiting from AI include finance, healthcare, energy, manufacturing, and telecommunications.

Portugal has also been notable, due to its innovative approach on applying AI into the education system of flow of students. Portugal has recognized that it’s crucial to implement AI into its curriculum to prepare students for the future of work, and the necessities of digital skills for any industry. Also, on the teaching side of the initiative, integrating AI in education can help personalize learning. It can analyze student data and provide personalized recommendations for each student. AI can automate routine tasks as well, such as grading and lesson planning. 

One of the most significant developments in Portugal’s AI landscape is the launch of the Microsoft AI Innovation Factory in Lisbon. Located within the AIhub, this initiative is a partnership between Microsoft, Accenture, Avanade, and Lisbon City Hall. Officially inaugurated in November 2024, the Factory is now fully operational and aims to promote the adoption of Artificial Intelligence by public and private companies, in different industries and sectors, and contribute to the sustainable growth of Portugal through new digital innovation scenarios

The Center for Responsible AI in Lisbon is a groundbreaking initiative dedicated to advancing artificial intelligence that is ethical, transparent, and socially beneficial. Led by Unbabel and supported by a diverse consortium of startups, research institutions, industry leaders, and legal experts, the Center focuses on developing AI systems that are fair, explainable, energy-efficient, and privacy-preserving. It plays a vital role in shaping European AI legislation and is one of the largest centers of its kind in Europe. Funded by the European Union through Portugal’s Recovery and Resilience Plan, the Center fosters collaboration across sectors to ensure that AI technologies align with human values and democratic principles. Its research spans multilingual conversational AI, human-AI interaction, and sustainable algorithm design, positioning Portugal as a global leader in responsible AI innovation. It’s also contributing to the EU AI Act, helping translate ethical principles into enforceable legislation.

Portugal is actively implementing the European Union’s Artificial Intelligence Act (AI Act), which came into force on August 1, 2024. As the world’s first comprehensive legal framework for regulating AI, the AI Act sets out strict rules for high-risk systems and prohibits certain applications deemed unacceptable, such as social scoring and manipulative technologies. Portugal has committed to meeting all compliance deadlines, including the designation of national authorities responsible for oversight and enforcement, but it has yet to formally designate the competent authorities required under Article 70 of the AI Act.
Connectivity and Digital Data Market
The Portuguese government raised nearly 567 million euros with the 5G spectrum auctions.  Following the country’s spectrum auction in October 2021, telecom operator NOS became the first to launch 5G services in December 2021, securing 100 MHz in the 3.6 GHz band and 2x10 MHz in the 700 MHz band.  MEO, owned by Altice Portugal, which launched its 5G network in January 2022, has invested over 1 billion euros in its network infrastructure to achieve a 5G coverage of 50% of the population (March 2022).  Vodafone Portugal was also able to secure 5G spectrums.  In total, the Portuguese government was able to raise nearly 567 million euros with the 5G auctions. Portugal also came upfront positioning itself on the group of countries that plan on banning Chinese suppliers of 5G, one of them being Huawei. The three main operators in Portugal already have said that they do not plan on using Huawei’s equipment 5G core equipment.

Submarine Cables

A major sector which has seen growth in Portugal is the submarine cable sector. Over 95% of international data and voice transfers are routed through fiber optic submarine cables laid across the seafloors. These cables offer greater carrying capacity of data compared to satellite transmission. The international bandwidth available as result of these cables has also doubled between 2020 and 2022, showing a consistent increase in the reliance on and importance of these cables. As of July 2025, TeleGeography recorded 597 cable systems, and 1,712 landings are active or under construction. According to Mordor Intelligence, the global submarine cable systems market is expected to grow from $14.88 billion in 2025 to $24.18 billion by 2030, reflecting a compound annual growth rate (CAGR) of 10.2%. 

This surge is fueled by rising demand for high-capacity data transmission, particularly from hyperscale cloud providers investing in trans-oceanic routes. Portugal is an ideal hub for these submarine cables due to its strategic geographic location on the southwest of mainland Europe. It currently has 17 submarine cables and is expected to have around 21 by 2027. AICEP has also been actively “working hard to attract subsea cables”, especially to convince international industry players to invest in cable landing stations and data centers, which spur investments in the digital economy, shaping Portugal into a major Tech Hub. 

One of Portugal’s priorities continues to be the replacement of the Atlantic submarine cable ring linking the mainland with Madeira and Azores and between the islands (CAM submarine cables).  The deployment of the new Atlantic CAM submarine cable system officially began on February 1, 2024, marking a major milestone in Portugal’s digital infrastructure strategy. Co-financed by the Connecting Europe Facility (CEF) with an EU contribution of €40.5 million, the project aims to be completed by May 31, 2027. The system includes high-capacity fiber-optic links between mainland Portugal, the Azores, and Madeira, as well as inter-island connections within the Azores. It also integrates SMART cable technology, enabling real-time seismic and environmental monitoring. It is the first SMART cable in Portugal and one of the earliest large-scale SMART-enabled systems being deployed worldwide.

This upgrade not only enhances territorial cohesion and digital resilience but also positions Portugal as a strategic hub for transatlantic data and scientific collaboration. EllaLink, the first high-speed submarine fiber optic cable linking Europe (Sines, Portugal) and South America (Fortaleza, in Brazil) was launched on June 2021; an essential infrastructure for the digital connection and data transmission between the two continents.  The EllaLink reinforces Portugal’s strategic location for connecting Europe to the rest of the world, and it is a crucial infrastructure indispensable to growing Portugal’s digital economy.  

Equiano, the Google-funded state-of-the-art subsea cable which was recently completed and connects Portugal to South Africa.  The line starts in Portugal, follows the west coast of Africa, and lands in South Africa, with several branching units along the way.  Equiano will improve the digital connectivity between Europe and several West African countries and capitalizes on Portugal’s close cultural, economic, and political proximity to the African continent.  The long-term, steady-state-impact project will enhance the economic potential for businesses using this infrastructure directly or indirectly.   The two (EllaLink + Equiano) cables will improve the internet bandwidth for users in Portugal, contributing to the Portuguese GDP by up to €500 million per year, according to a study by Copenhagen Economics.

Additional two subsea cables are under development to moor at Sines. 2Africa, a subsea cable project funded by Meta plus seven other international partners, will become the most comprehensive subsea cable system ever deployed by the time when finished, with 28,000 miles. 2Africa would serve an estimated three billion people in 33 countries, and it will run from Europe, around Africa, to the Arabian Gulf, India, and Pakistan. It is expected to go into service in 2024. Medusa is a new 326-million-euro submarine cable project (8700km, 24-fibre pair, 480Tbps). Medusa is owned by infrastructure and telecom Operator AFR-IX telecom, a private Barcelona-based capital company. AFR-IX telecom is a licensed telecommunication operator in Portugal, the USA, and in multiple African countries such as South Africa, Nigeria, Ghana, DRC, Mali, Burkina Faso, Sierra Leone, Niger, and Cameroon. Medusa will be ready for service in 2025, connecting Portugal, Spain, France, Italy, Morocco, and Algeria and in 2025, connecting to Tunisia, Greece, and Egypt.

In September 2023, Google announced the Nuvem cable which will directly connect the U.S., Bermuda, and Portugal, and is expected to be ready for service in 2026. Nuvem will improve network resiliency across the Atlantic, helping meet growing demand for digital services. The new cable path will add international route diversity and support the development of information and communications technology (ICT) infrastructure for the continents and countries involved. Most recently (July 2025), Google announced the SOL submarine cable system, designed to connect the United States (Palm Coast, Florida) with Bermuda, the Azores (São Miguel Island), and Spain (Santander). SOL is expected to become operational by early 2027 and will be the only in-service fiber-optic cable directly linking Florida to Europe. The Azores’ strategic location makes São Miguel Island a key landing point, reinforcing the region’s role as a digital gateway between continents and elevating its importance in global connectivity.

The City of Sines is of particular importance as it has become a new Atlantic Hub with several cables landing there including the EllaLink, Equiano, 2Africa, and Medusa cables. 

Data Centers

Data centers are another growing component of Portugal’s technological development. These physical facilities house critical applications and data for different organizations. They provide network infrastructure, storage infrastructure, computing resources, network security appliances, and application delivery assurance for a variety of clients ranging from private to public organizations. 

Sines is emerging as a critical hub for Portugal’s digital infrastructure, particularly in the development of hyperscale data centers. The region will host the ambitious Sines Data Center (Sines DC) project, an $8.5 billion data center campus developed by Start Campus, a company jointly owned by a U.S. investment fund and a British company. Once completed, Sines DC will be the largest renewable-powered data center campus in Europe, with a planned total capacity of 1.2 gigawatts (GW). It will be powered entirely by 100% green energy, including solar, wind, and ocean-based cooling systems. The project is designed to meet the growing demand for cloud computing, AI, streaming services, and data storage, and aims to position Portugal as a leading digital gateway between Europe, Africa, and the Americas. 

With full buildout expected by 2027, Portugal will rank among the top European countries in data processing capacity—second only to Ireland. The government has granted the project Project of National Interest (PIN) status to streamline licensing and attract further investment, anchoring Sines as a strategic node in Europe’s digital and energy transition.

The Start Campus project also leverages the strategic geographical importance of Portugal at the edge of Europe through all the new submarine cables starting to operate. Portugal will become the significant data hub between Europe, the Americas, Africa, and beyond and act as the gateway for an explosion of transatlantic connectivity.  There will be a strong demand for U.S. products and services across all the above segments.  
Digital Infrastructure firm Equinix will build its second data center in Lisbon to act as a hub for data communications across the Mediterranean, the Atlantic, and between Europe and Africa. There are 11 subsea cables landing in the Lisbon area, with connectivity to 91 land stations and 62 countries. Lisbon’s increasing significance as an undersea cable hub makes it an ideal location for the new data center amid increasing demand.

A January 2022 Deloitte report concludes that Portugal is well positioned as a critical player in the European data strategy, bridging a set of unique conditions to connect Europe to markets such as North America, South America, Africa, and the Middle East/Asia. Portugal “is in the right place and the ‘timing’ to benefit from the explosion of the digital data market that in recent years has seen an exponential increase in volume, with the amount of data created, consumed, and stored reaching more than 180 zettabytes in 2025, 90 times the amount of data in 2010.”  The Deloitte report indicates that “Portugal has unique conditions to attract the biggest technological players who need to expand their offer in the global data market,” and the country “emerges to meet Europe’s infrastructure requirements with competitive, robust and far-reaching connectivity.
U.S. companies play a crucial role in the development of Portugal’s data center sector, acting as both financial backers and technology leaders in some of the country’s most transformative infrastructure projects. According to a 2025 report by Copenhagen Economics, the data center industry could become a central pillar of Portugal’s economy, contributing up to €26 billion to GDP by 2030 and supporting 50,000 jobs annually. These investments not only drive economic growth and job creation but also enhance Portugal’s digital sovereignty and global competitiveness, with American firms at the forefront of innovation, sustainability, and hyperscale deployment

Cybersecurity and Data Protection

In its 2024 Global Cybersecurity Index (GCI), Portugal has reached a significant milestone, advancing to 4th place globally, alongside Singapore and the USA, and achieving the top classification.

“Advanced Computing Portugal 2030” is a dynamic and evolutive process aimed to promote and expand Advanced Cyberinfrastructure (ACI) in Portugal through 2030. It considers close international collaborative actions and has been fostering all advanced scientific computing fields, as well as mobilizing data processing in an effective and diversified way among industry and academic communities, including health, climate, energy, mobility, and the study of social processes. The strategy consists of three main areas of intervention: to create the country’s supercomputing infrastructure at the service of research and innovation, to develop and retain a workforce with advanced computing skills, and to implement public policies on info-structure promoting the creation of high-value services and software.  

The Portuguese National Cybersecurity Center (CNCS) is the operational coordinator and Portuguese national authority specialized in cybersecurity working with State entities, operators of essential services and digital service providers. On April 2020, CNCS published its National Cybersecurity Framework which adopted most of the NIST´s (U.S. National Institute of Standards and Technology) Cybersecurity Framework.  Cybersecurity is a priority for Portugal as cyberattacks increased 79% in 2020 as result of the pandemic and its effects, CNCS already urged increased investment in digital skills, including youth education, artificial intelligence, 5G and cybersecurity asymmetries. This was also a priority during the recent Portuguese EU Presidency, namely investments in networks security and cybersecurity skills as key elements to build a fairer, more resilient, and sustainable Europe able to face future challenges.

 In Portugal, the number of data breaches, a specific type of cyber attack, fluctuated from 2020 to 2024. In the first quarter of 2021, there were more than two million data breaches, the highest figure recorded. By the third quarter of 2022, this figure decreased to almost 1.3 million, only to sink even more during 2023. By the third quarter of 2024, there were almost 738,700 data breaches. 

Portuguese public opinion is susceptible to government access to shared public data. The National Data Protection Commission (CNPD) is an independent administrative entity with legal authority under public law and administrative and financial autonomy. Portuguese public opinion (and Europe) is very sensitive to government access to public data and recent decisions by CNPD against U.S. firms has raised concerns and the need for an agreement on a privacy shield framework. 

In November 2025, Portugal’s Parliament approved a cybersecurity law that transposes the EU’s NIS 2 Directive while introducing provisions to identify and exclude “high risk suppliers” from critical infrastructure. The legislation also strengthens risk management and incident reporting requirements and enhances supervisory powers. The NIS 2 Directive imposes new standards and obligations on a wide range of essential and important sectors. This includes stricter management of cybersecurity risks, the need for coordination between public and private entities, and more comprehensive oversight. The new legal framework will establish a Cybersecurity Assessment Commission, expand the number of sectors, companies, and public entities under supervision, and impose harsher penalties for non-compliance with the new rules.

Leading Sub-sectors

Key segments and topics of interest include cybersecurity, internet of things (IoT), big data, health IT, cloud computing, business IT including ERP, data centers, smart social business platforms, integrated systems, virtual & augmented reality, and digital factory. 

Opportunities

There is strong demand for U.S. products and services across all the above segments. Key players like Microsoft, IBM, Oracle, and CISCO are well-established.  Cyber training and development are also a focus for the Portuguese government. 

There is a growing demand for cloud-based software solutions, which offer greater flexibility and scalability. The Portuguese software market is in increasing adoption of artificial intelligence and machine learning technologies. There is a growing popularity of open-source software, which is being increasingly adopted by both businesses and individuals.

Additionally, the Portuguese government has been actively promoting the development of the country’s technology sector, with a range of initiatives designed to support startups and encourage innovation.
The U.S. Embassy in Lisbon and the U.S. Commercial Service Portugal closely follow ICT developments and work with stakeholders such as associations and multipliers and the American Chamber of Commerce in Portugal to identify opportunities and flag policy concerns.

Key Government Regulatory Agencies

• Portuguese Regulator for the Communications Sector (ANACOM) 
• Science and Technology Foundation 
• AICEP Portugal Global
• National Cybersecurity Center - CNCS

Resources

• Portuguese ICT Cluster
• Startup & Entrepreneurial Ecosystem 
• AI Portugal 2030
• Submarine Cable Networks
• Software Development in Portugal
• Mordor Intelligence
• Copenhagen Economics