Microsoft to Invest $10 Billion in Portugal to Build Advanced AI Data Hub

Microsoft is set to invest an estimated $10 billion in a new artificial intelligence data hub in Portugal, marking one of the largest technology investments ever made in the country. The project, which will be based in the coastal city of Sines, is designed to expand Europe’s AI infrastructure and strengthen Microsoft’s global cloud computing network.

According to early project details, Microsoft will collaborate with Start Campus, a local data infrastructure developer, and NVIDIA, whose advanced chips will power much of the facility’s computing capacity. The data hub will reportedly host over 12,000 high-performance GPUs, enabling the company to train large AI models and deliver faster, more efficient cloud services across Europe.

The Sines site was selected for its access to renewable energy and undersea data cables — key elements for powering energy-intensive AI operations. Microsoft President Brad Smith described the project as a “strategic step toward building sustainable and responsible AI infrastructure” while boosting Portugal’s growing technology ecosystem.

Impact and Outlook:
The $10 billion investment represents a major leap for Portugal’s digital economy, positioning the country as a key European hub for AI and data-driven innovation. Local officials have praised the project for its potential to create thousands of jobs, attract global partnerships, and stimulate further tech-related investments in the region.

For Microsoft, the new facility reinforces its commitment to expanding global cloud infrastructure while meeting increasing demand for AI-powered solutions. It also underscores the intensifying competition among U.S. tech giants to secure dominance in Europe’s data and AI markets.

However, the scale of the project raises concerns about energy use, data security, and environmental impact, with regulators likely to monitor how the company balances innovation with sustainability.