Microsoft Corp. announced plans to invest $10 billion in a new artificial intelligence data center along Portugal’s coast, marking one of its biggest European investments this year. The facility will be developed in Sines, roughly 150 kilometers south of Lisbon, in partnership with Portuguese developer Start Campus and British startup Nscale. The funding details were first shared by Microsoft President Brad Smith with local newspaper Jornal de Negócios during the Web Summit in Lisbon.
A Microsoft spokesperson confirmed the $10 billion figure but declined further comment. A Start Campus representative indicated that the amount aligns with ongoing discussions for the next phase of development. The first of six planned buildings at the Sines site opened in March. Microsoft had previously secured a multi-year lease for computing capacity at the site in October, reflecting the company’s broader strategy to expand its infrastructure for artificial intelligence services.
The investment comes amid rising demand for high-performance AI computing. To address capacity constraints, Microsoft has recently signed agreements with several “neocloud” providers, including CoreWeave Inc. and Nebius Group NV, and plans to lease additional capacity from Nscale facilities in Norway and the UK.
Sines, a coastal town with about 15,000 residents, is emerging as a major investment hub in Portugal. The region hosts undersea cables connecting Europe to Brazil and Africa, with Google planning to add a line to South Carolina. Other major projects in Sines include China’s CALB Group constructing a €2 billion ($2.3 billion) battery factory and plans for an EU-backed AI “gigafactory,” positioning the town as a critical node in Europe’s tech and energy infrastructure.
Microsoft’s $10 billion investment in Sines highlights the company’s commitment to expanding AI capabilities in Europe while leveraging strategic coastal locations with robust digital connectivity.
