Microsoft to invest $10bn in Portugal AI Data Hub

Microsoft has announced plans to invest $10 billion in a new Portugal AI Data Hub located in the port city of Sines, marking one of the largest artificial intelligence (AI) infrastructure projects in Europe.

According to Bloomberg, the investment aims to strengthen Europe’s digital capabilities and make Portugal a key player in the global AI ecosystem.

The tech giant will collaborate with Start Campus, AI infrastructure platform Nscale, and chipmaker Nvidia to install over 12,000 next-generation Nvidia GPUs at the site.

The Portugal AI Data Hub will play a major role in providing the computing power needed for AI innovation and cloud services across the region.

Microsoft’s Vice Chair and President, Brad Smith stated that the initiative will help position Portugal as a “benchmark for responsible and scalable AI development.”

The project also supports the country’s broader ambitions to produce green energy for powering data centers along its Atlantic coast.

The investment comes as demand for AI computing infrastructure continues to surge worldwide, especially after OpenAI’s ChatGPT transformed the industry in 2022.

By choosing Portugal as its European base, Microsoft aims to build a sustainable and secure hub that supports both technological growth and environmental responsibility.