Microsoft has recently confirmed that it will invest $1 billion in Portugal to build an artificial intelligence data center, a move coming amid increased competition for AI infrastructure in Europe. In the same week that Google announced its $6.4 billion investment in Germany, Microsoft also revealed its major investment plan in Portugal. The data center will be located in Sines, a coastal city about 160 kilometers from the capital, Lisbon.

Microsoft

This project is Microsoft's largest investment in Portugal and an important investment in the field of AI computing capacity in Europe to date. Microsoft is collaborating with the UK-based Nscale, NVIDIA, and Portuguese developer Start Campus to deploy 12,600 NVIDIA GPUs at the center, which will set a new benchmark for AI infrastructure in Europe.

This investment is a core part of Microsoft's "Digital Promise Europe" initiative, announced in April, aiming to more than double data center capacity across 16 European countries by 2027. The new architecture will support advanced AI workloads across multiple industries. The Start Campus project in Sines will eventually consist of six independent buildings with a capacity of 1.2GW, but it remains unclear how much of this will be used by Microsoft and Nscale.

Brad Smith, Microsoft's vice chairman and president, said during a web summit: "This collaboration reflects our confidence in Portugal's potential to lead the next wave of AI innovation. We are helping to position Portugal as a benchmark for responsible and scalable AI development in Europe. It's not just about technology, but about future capabilities, trust, and opportunities."

Microsoft's investment in Portugal also includes other digital transformation projects. Its "Skills for Jobs" program with LinkedIn aims to prepare students and professionals for the AI-driven economy, while participation in the AI Innovation Factory involves Accenture, Avanade, and the Lisbon Unicorn Factory to expand AI solutions, establish governance structures, and promote responsible AI practices.

Key Points:

🌍 Microsoft's $1 billion investment in an AI data center in Portugal marks an important step in the competition for AI infrastructure in Europe.

💻 It will deploy 12,600 NVIDIA GPUs to enhance AI computing capabilities in Europe.

📈 Microsoft is also actively involved in digital transformation plans, helping Portugal develop talent and governance capabilities in the AI field.