Economy

Microsoft to Build Major AI Data Hub in Portugal with $10 Billion Investment

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Microsoft will spend $10 billion to build a large AI data centre near Sines, Portugal, in a project seen as one of the biggest AI infrastructure moves in Europe.

The company will work with Start Campus, Nscale and NVIDIA to place 12,600 next‑generation NVIDIA GPUs at the Sines site. Start Campus, a venture backed by Davidson Kempner and Pioneer Point Partners has already started work on a multi‑building data centre hub, and one building is already operating.

“By strengthening the national AI infrastructure through collaboration with Nscale, NVIDIA, and Start Campus, we are helping to position Portugal as a benchmark for the responsible and scalable development of AI in Europe,” Microsoft’s Vice Chair and President Brad Smith said.

Sines has several advantages for data centres: planned green energy projects, and undersea cable links that connect Europe with Africa and the Americas. Those features make it a strong spot for energy‑heavy computing work.

Data centre investment has risen sharply since the launch of ChatGPT in 2022, as more firms move services to the cloud and add AI tools. Microsoft’s new project follows broader plans at Start Campus to invest in the region and reflects growing demand for AI computing power across industries.

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