Microsoft to invest USD 10 billion to build AI data hub in Portugal’s Sines tech corridor

Lisbon, Portugal, November 11, 2025- Microsoft has announced plans to invest USD 10 billion in building a large-scale AI data centre hub in Sines, Portugal, marking one of its biggest single infrastructure commitments in Europe to date. The facility will form a central part of Microsoft’s European AI expansion and strengthen Portugal’s position as a key regional technology hub.

The new data centre will be developed in partnership with Start Campus, the developer of the Sines 4.0 project, which is backed by Davidson Kempner Capital Management and Pioneer Point Partners. Microsoft confirmed that the Sines hub will integrate approximately 12,600 next-generation NVIDIA GPUs to power AI workloads, training, and inferencing at scale.

The investment forms part of Microsoft’s global plan to expand AI infrastructure closer to renewable energy and subsea cable routes. The Sines site, located about 150 kilometres south of Lisbon, is strategically positioned near key transatlantic fibre links and renewable energy corridors, making it ideal for high-density compute operations.

In a statement, Microsoft Portugal President Paula Panarra said the project underscores the company’s confidence in the country’s digital infrastructure and workforce. “This investment will support the growth of Portugal’s AI economy and help accelerate the adoption of advanced cloud and AI services across Europe,” she said.

The initiative will be carried out in cooperation with Nscale, Microsoft’s local cloud partner, and NVIDIA, whose GPUs will form the computational backbone of the deployment. Start Campus stated that the new facility aligns with its goal to make Sines a carbon-neutral data centre cluster, powered by a mix of renewable sources and advanced cooling technologies.

Portugal’s Prime Minister Luís Montenegro welcomed the announcement, calling it “a transformative milestone for the Portuguese economy” and a testament to the nation’s growing importance in Europe’s digital map.

Microsoft’s USD 10 billion investment comes amid a broader wave of hyperscale expansion across Europe, with Google, Amazon, and Oracle also scaling regional AI data centre capacity. The move strengthens Microsoft’s competitive footing in AI infrastructure while deepening its commitment to energy-efficient and sustainable operations within the European Union.