Microsoft and Google Announce Over USD 16 Billion in European AI Data Centre Investments

Lisbon, Berlin, November 11, 2025- In a decisive move to cement Europe’s role in the global AI race, Microsoft and Google have announced more than USD 16 billion in new data centre investments across Portugal and Germany, signalling one of the largest collective infrastructure expansions by U.S. tech giants in the region to date.

Microsoft confirmed plans to invest USD 10 billion in a next-generation AI data centre hub in Sines, Portugal, marking its largest single infrastructure commitment in Southern Europe. The company said the project will leverage partnerships with Start Campus, Nscale, and NVIDIA, and deploy around 12,600 advanced GPUs to accelerate AI workloads.

“This is a historic investment that positions Portugal as one of the most important hubs for responsible and scalable AI in Europe,” Microsoft President Brad Smith said in a statement, adding that the expansion underscores Microsoft’s commitment to “building cloud and AI capacity powered by clean energy.” The Sines site, situated near major subsea cable landings, will serve as a key node connecting Europe, Africa, and the Americas.

Meanwhile, Google announced a EUR 5.5 billion (~USD 6.4 billion) investment in Germany through 2029 to expand its cloud and AI data centre footprint. The plan includes new facilities in Dietzenbach and Hanau, as well as an enlarged Munich office campus.

According to a company statement, the investment will “expand our digital infrastructure and support local innovation,” while aligning with Google’s target to operate entirely on carbon-free energy by 2030.

Combined, the two announcements represent a strategic pivot toward onshore, renewable-powered AI compute in Europe, a region that has sought to balance sovereignty, sustainability, and competitiveness in the wake of global chip shortages and rising demand for GPU clusters.

Industry analysts note that Europe’s AI infrastructure boom is accelerating, with hyperscalers racing to secure renewable energy sources and proximity to undersea cables. Data centre consultancy DCD reported that both Microsoft’s and Google’s projects are designed with energy reuse and water efficiency standards that align with the EU’s upcoming Energy Efficiency Directive (EED).

The dual announcements follow similar hyperscale commitments across the continent, including Amazon Web Services’ EUR 7.8 billion Spanish expansion and Meta’s Nordic AI cluster buildout, highlighting how Europe is fast becoming a key theatre for the next wave of global AI infrastructure investment.