Microsoft has announced a massive $10 billion investment to establish an advanced Artificial Intelligence data center hub in Portugal. Revealed by Microsoft President Brad Smith during the Web Summit in Lisbon, the project is planned for the port city of Sines and represents Microsoft’s largest investment in the country to date, positioning it as one of the biggest AI-focused infrastructure undertakings in Europe.
The Microsoft AI Data Hub Portugal will see the tech giant partner with Portuguese developer Start Campus and British AI infrastructure provider Nscale. The core of the facility will be equipped with 12,600 next-generation NVIDIA Graphics Processing Units (GPUs), designed to support large-scale AI model training and meet the surging European demand for Microsoft Azure cloud services. The deployment is scheduled to begin in early 2026.
Sines was selected for its significant strategic advantages, including its role as a key landing point for submarine telecommunications cables that connect Europe with Africa and the Americas. Additionally, the Microsoft AI Data Hub Portugal is committed to utilizing the region’s abundant and competitively priced renewable energy, aligning with Europe’s sustainable technology goals. Smith noted that this investment is helping to position Portugal as a benchmark for AI development.
This $10 billion commitment underscores the global “race against time” among tech giants to expand AI computing capacity. By leveraging Sines’ strategic location and sustainable power sources, the Microsoft AI Data Hub Portugal is set to solidify the country’s status as a critical digital gateway in the Atlantic and a major hub for AI development in Southern Europe.
