Microsoft has announced plans to invest $10 billion in building an advanced artificial intelligence data centre complex along Portugal’s coastline, marking one of its largest European investments this year.
The investment will support the development of a large-scale data centre park in Sines, a coastal town about 150 kilometres south of Lisbon. The project is being developed in partnership with Start Campus, a Portuguese infrastructure developer, and British startup Nscale. Microsoft President Brad Smith revealed the plans during an interview at the Web Summit in Lisbon.
A Microsoft spokesperson confirmed the funding but did not provide additional details. Start Campus stated that the $10 billion figure aligns with discussions about the next phase of expansion, following the opening of the first of six planned buildings earlier this year.
The Sines facility forms a central part of Microsoft’s strategy to strengthen its computing infrastructure amid the growing demand for AI-powered services. In October, Microsoft signed a multi-year deal to lease capacity at the Sines site. The company is also collaborating with several high-performance “neocloud” providers, including CoreWeave Inc. and Nebius Group NV, to address capacity shortages. Additionally, Microsoft plans to lease cloud capacity from Nscale in Norway and the United Kingdom.
Sines, with a population of around 15,000, is fast becoming a major technology and industrial hub in Portugal. It hosts undersea cable connections linking Europe to Brazil and Africa, with Google soon adding a transatlantic line to South Carolina. The region has also attracted other major global investments, including a €2 billion battery factory by China’s CALB Group and Portugal’s proposed EU-backed AI “gigafactory.”
Microsoft’s massive investment underscores its commitment to expanding AI infrastructure in Europe, positioning Sines as a key node in the global technology network while boosting Portugal’s growing reputation as a digital innovation hub.
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