Microsoft Plans to Invest $10 Billion in Portuguese AI Data Hub
2025-11-12 10:43
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Wedoany.com Report-Nov. 12, Microsoft (MSFT.O) announced on Tuesday that it will invest $10 billion in artificial intelligence infrastructure at a data centre in Sines, Portugal, over the next few years. The project is among the largest AI investments in Europe. The company will partner with Start Campus, AI infrastructure platform Nscale, and chipmaker NVIDIA to deploy 12,600 next-generation NVIDIA Graphics Processing Units (GPUs) in the facility, located 150 km south of Lisbon.

A view shows a Microsoft logo at Microsoft offices in Issy-les-Moulineaux near Paris, France, March 21, 2025.

Start Campus, a joint venture between U.S. investment fund Davidson Kempner and Britain’s Pioneer Point Partners, announced in April plans to invest 8.5 billion euros ($9.9 billion) by 2030 in a data centre hub to meet growing demand from major tech and AI companies. One of the planned six buildings is already operational.

"By strengthening the national AI infrastructure through collaboration with Nscale, NVIDIA, and Start Campus, we are helping to position Portugal as a benchmark for the responsible and scalable development of AI in Europe," Microsoft Vice Chair and President Brad Smith said.

Portugal is positioning Sines as a key hub for green energy production to support energy-intensive data centres. The Atlantic coastline and port infrastructure make it a prime location for subsea cables linking Europe, Africa, and the Americas, forming an important part of global internet connectivity.

The investment in Sines reflects the surge in data centre development following the launch of ChatGPT by OpenAI in 2022. Companies across industries are increasingly moving operations to the cloud and integrating AI into business processes, driving demand for large-scale computing infrastructure.

Microsoft’s deployment of GPUs in Sines will enhance the country’s AI capacity and contribute to scalable, energy-efficient computing solutions. The partnership with Start Campus, Nscale, and NVIDIA ensures integration of advanced technology, operational expertise, and financial backing to support long-term AI infrastructure growth.

The project aligns with Europe’s push for leadership in AI while promoting sustainable energy use for high-demand computing centres. Sines’ strategic location on the Atlantic coast offers reliable connectivity and renewable energy sources, making it an attractive site for global technology investments.

Overall, Microsoft’s $10 billion commitment highlights the increasing focus on AI-ready data centres in Europe. It combines cutting-edge hardware, strategic partnerships, and a commitment to sustainable operations, positioning Portugal as a notable hub for advanced AI research and industrial applications.

The Sines project demonstrates how collaboration between multinational tech firms, investment funds, and AI infrastructure platforms can accelerate the deployment of next-generation computing capabilities while supporting regional economic development and energy transition goals.

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