Portugal expands cloud adoption across public administration

Portugal’s public administration has significantly expanded its use of cloud computing, with new research showing rising investment as government organisations prepare for greater AI adoption and future sovereign cloud initiatives.

The findings, published by the Agency for State Technological Reform (ARTE) in its Cloud Governance Impact Assessment Report for Public Administration, are based on responses from 262 public sector organisations, including ministries, municipalities, public institutes and schools.

According to the report, 77% of surveyed organisations already use cloud services, while others are preparing future deployments. Adoption is highest among larger public bodies such as regulatory authorities, higher education institutions and public institutes, although smaller organisations are also expanding their cloud capabilities.

Infrastructure as a Service (IaaS) has grown particularly rapidly, rising from 11% adoption in 2020 to 38% in 2025, supporting the deployment of emerging technologies, including AI.

Despite increased cloud adoption, AI adoption remains at an early stage across Portugal’s public administration. Most organisations reported no AI projects during the previous year, citing limited internal expertise, implementation costs and security and data protection concerns as the main obstacles.

Cloud services are provided through a mix of Portuguese, European and international providers, reflecting operational requirements while supporting broader digital sovereignty objectives.

ARTE concludes that the public sector has reached an intermediate level of cloud maturity and recommends strengthening governance practices such as FinOps, DevOps and multi-cloud strategies, investing in digital skills and preparing for the National Sovereign Cloud Plan and the National Digital Strategy.

Why does it matter?

The report suggests that cloud adoption is no longer the primary challenge for digital government. Instead, attention is shifting towards governance, workforce skills and organisational readiness needed to make effective use of cloud infrastructure and AI.

The findings also illustrate how cloud policy is increasingly linked to digital sovereignty. By combining domestic, European and international cloud providers while preparing a National Sovereign Cloud Plan, Portugal reflects a broader European effort to balance technological innovation with strategic control over critical digital infrastructure.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!