June 03, 2026
Gibraltar’s opposition used a parliamentary session on 14 January 2026 to press the Government for details on the proposed Pelagos Data Centres project – a 250 MW facility touted as a £1.8bn private investment. The exchange, part of the morning’s questions to the Minister for Inward Investment, revealed significant gaps in formal agreements and raised doubts about the project’s energy strategy.
No signed agreements
Responding to a question from Opposition Leader Dr K Azopardi (Q809), Minister Sir J J Bossano confirmed that no memorandum of understanding, development licence or building lease has been signed with Pelagos. “There is not yet a formal agreement regarding the proposed site,” the minister said.
Azopardi retorted: “So no buildings, no development licence, not even an MoU? On what basis was the big announcement made?”
Bossano insisted the announcement came from the company, not the Government, and described the project as “the biggest inward investment in all the time I have been in this Parliament.”
Electricity: off‑grid but source undisclosed
On the critical question of power (Q810), Bossano stated that the data centre will not draw electricity from Gibraltar’s own grid because the existing power station “is not big enough to supply the energy they require. There will be no energy left for anybody else.”
He confirmed that a new external electricity supply will be brought in, but refused to give details, citing security concerns:
“We do not necessarily want to advertise how exactly we are going to bring it here for the benefit of others who might then try to stop it reaching us.”
At the same time, the minister hinted at a broader benefit: “The intention is that the delivery of electricity would be sufficient to supply Gibraltar as well as the data centre and therefore produce an alternative and less expensive source of electricity for us.”
No financial aid from Government
Bossano repeatedly emphasised that the project will receive no direct financial assistance from the public purse. “The project will not be receiving any financial assistance from Government,” he said. His role, he explained, is to help the investor navigate regulatory and technical hurdles, not to write cheques.
Vague answers on environment, water and height
On environmental impact (Q797), water type and volume (Q798‑799), and the final height of the building, the minister said the project is still being adjusted. “There has already been a reduction in height,” he noted, adding that once the final design is ready, “whatever the law requires to be done will be done.”
He declined to commit to public consultations, quipping that neighbours always oppose new towers once they already live in one.
Regarding water, Bossano admitted he did not know whether the data centre would use fresh or seawater, though he mentioned that using heated seawater for cooling could later make desalination cheaper. “I do not know, and I have not asked them,” he said.
Investment figure and local economic benefit
Opposition MP D J Bossino challenged the Government on how the £1.8bn investment figure is justified (Q808). Sir J J Bossano replied that a large part of that sum represents equipment manufactured outside Gibraltar – meaning much of the spending will not flow through the local economy. Projected tax revenues (PAYE and corporation tax) were described as “totally speculative”.
Outcome
Parliamentary analysis of the proposed Pelagos Data Centre project following the session on 14 January 2026. A total of 12 questions were tabled specifically for oral answer regarding the project, including six by MP C Sacarello regarding environmental issues.
Three structural takeaways emerge from the record:
- Infrastructure Isolation: The project will not be supported by Gibraltar’s existing water supply or electrical grid. The developer is solely responsible for sourcing these resources independently from external providers.
- Regulatory and Visual Adjustments: The project remains subject to standard planning and environmental controls. To mitigate local objections regarding visual impact and potential opposition from nearby residents, plans are being adjusted to reduce the overall height of the building (“making it lower”).
- Absence of Commitments, Site Vagueness, and Timeline Transparency: There are currently no signed agreements, leases, or financial subsidies connecting the Government of Gibraltar to the project. When directly questioned by MP D J Bossino regarding the precise location of the facility, Minister Bossano failed to provide a specific address, stating that there is not yet any formal agreement regarding the proposed site. Despite the developer’s commitment to provide key technical data in the first quarter of 2026, no updated information on the project’s timetable or those submissions has been published as the second quarter draws to a close – neither on the Gibraltar Parliament website nor on any other official public platform.
Caveat: statements reflect January 2026
All quotes and assertions above are taken from the official parliamentary record of the morning session on 14 January 2026. Readers should bear in mind that the project may have evolved since then, and that the Government and Pelagos have since promised more detailed information in the first half of 2026.