Microsoft announces a landmark $10 billion investment in Portuguese AI data centers, representing the company's largest AI infrastructure commitment in Europe to date.
Microsoft has announced a landmark $10 billion investment to build one of Europe's most advanced AI data center complexes in Sines, Portugal. The project, developed in partnership with Nscale, NVIDIA, and Start Campus, will deploy 12,600 next-generation NVIDIA GPUs.
The investment represents Microsoft's largest AI infrastructure commitment in Europe and the biggest data center initiative in Portugal's history. The facility will power Azure AI services for customers across the continent.
"This partnership reflects our confidence in Portugal's potential to lead the next wave of AI innovation," said Brad Smith, Microsoft's Vice Chair and President. "We're building infrastructure that will serve European businesses and researchers for decades to come."
The data center will feature advanced liquid cooling technology and be powered by 200MW of renewable energy. Construction begins immediately, with phase one expected to go live by Q1 2027.
Microsoft's broader European AI strategy includes a $30 billion commitment to UK AI infrastructure through 2028 and $400 million for Swiss cloud expansion. The company has now committed over $50 billion globally to AI infrastructure in the past 18 months.
Industry analysts note the timing reflects intensifying competition for AI infrastructure, with hyperscalers racing to secure GPU capacity amid ongoing supply constraints.
