Wedoany.com Report-Nov. 13, Portuguese telecom operators plan to invest 4.2 billion euros ($4.9 billion) over the next five years in high-speed 5G networks and satellite infrastructure, the Infrastructure Ministry announced on Wednesday. The investment aims to strengthen national digital connectivity and support large-scale projects such as data centers and artificial intelligence facilities.

NOS SGPS SA logo is seen in this illustration taken May 1, 2022.

According to the ministry’s statement, the operators will also expand the country’s fiber optic network to extend coverage to areas still lacking reliable mobile or internet access. The plan includes improving telecommunications infrastructure along Portugal’s major road, rail, port, and airport networks, reinforcing the country’s position as a key digital gateway in southern Europe.

Portugal’s three main telecom companies — Altice, NOS (NOS.LS), and Vodafone (VOD.L) — together control more than 90% of the domestic market and are expected to provide most of the planned investment. The Infrastructure Ministry said this collective effort reflects a shared goal of accelerating digital transformation and ensuring that high-speed connectivity reaches all regions, including rural and remote areas.

The investment announcement came a day after Microsoft (MSFT.O) revealed a $10 billion commitment to develop artificial intelligence infrastructure at the Start Campus data center in Sines, a port city on Portugal’s southern coast. Sines has become a strategic hub for large-scale energy and technology projects, including initiatives focused on green energy production to power data centers.

Infrastructure Minister Miguel Pinto Luz highlighted the country’s strategic importance in global communications, saying: “Portugal’s geostrategic location ... is now central to intercontinental connectivity. This is an opportunity that Portugal cannot, nor will it, waste, with the largest technological investment of all time underway in our country.”

Portugal’s Atlantic coastline provides a natural advantage for international telecommunications, serving as a major landing point for subsea cables that connect Europe, Africa, and the Americas. These cables form a critical part of the global internet infrastructure and position Portugal as a central hub for digital traffic between continents.

The combined public and private sector investments underscore Portugal’s growing role in the global digital economy. The expansion of 5G and satellite networks, alongside the development of new data centers, is expected to support innovation in industries such as logistics, manufacturing, and renewable energy.

Over the next several years, the projects are projected to create new employment opportunities, attract foreign investment, and enhance Portugal’s competitiveness in advanced technologies. The coordinated effort between telecom operators, multinational technology firms, and government agencies marks a significant step toward building a more connected and sustainable digital infrastructure across the country.