Pune, India | November 12, 2025
Microsoft Corporation has unveiled a major investment plan to allocate approximately US$10 billion for a large artificial intelligence (AI) data centre near the Portuguese port city of Sines. This project ranks among the largest AI infrastructure initiatives in Europe. Start Campus, a local data centre developer, Nscale, a UK-based AI infrastructure platform, and NVIDIA Corporation, a leading chip manufacturer, will develop the facility together. Additionally, the hub will feature around 12,600 next-generation NVIDIA GPUs to support cutting-edge AI systems for cloud and enterprise use.
Strategically, the Sines site, located about 150 kilometres south of Lisbon. It offers an excellent combination of renewable energy resources and subsea cable connectivity linking Europe, Africa, and the Americas. As a result, Sines has become a critical node for global data transmission. Microsoft praised the location as a model for responsible and scalable AI development in Europe.
Start Campus had previously announced plans for the Sines campus to include six buildings with over 1.2 gigawatts of IT capacity. Currently, one building is already operational. Microsoft’s involvement further strengthens Start Campus’s commitment to invest €8.5 billion in the facility by 2030.
Brad Smith, Microsoft’s Vice Chair and President, highlighted that the project strengthens Portugal’s AI infrastructure through collaboration with Nscale, NVIDIA, and Start Campus. He also noted that the investment will position Portugal as a leader in digital transformation across Europe.
From an economic perspective, the project is expected to generate substantial local employment opportunities. It establishes Portugal as a key destination for cloud and AI infrastructure investments. In response, the Portuguese government welcomed the announcement, calling it a historic milestone for the national technology sector.
The climate and energy aspects of the project are also crucial. The data centre leverages Portugal’s growing renewable energy capacity and coastal geography to power energy-intensive operations sustainably. Microsoft and its partners emphasize a commitment to low-carbon operations, which highlights the project’s green credentials.
This announcement occurs amid growing demand for AI computing power and cloud infrastructure across Europe and beyond. Following the launch of OpenAI’s ChatGPT in 2022, many companies have accelerated investments in data centres to support AI workloads. Despite some analysts’ concerns about regulatory issues, rising energy costs, and competition from other global trade blocs. Microsoft’s investment underscores confidence in Europe’s role in the global AI economy.
Looking ahead, Microsoft, Start Campus, and Nscale plan to provide more detailed project timelines, construction phases, and workforce training programs as the Sines campus progresses toward full operational capacity. Ultimately, this development could establish the region as a major AI hub, supporting proprietary cloud services, AI model training, data sovereignty, and the expansion of the regional digital ecosystem.
In summary, Microsoft’s US$10 billion investment in the Sines AI data hub represents a transformative initiative for Portugal and Europe. It combines advanced AI technology, sustainable energy use, strategic connectivity, and economic development, setting a benchmark for future AI infrastructure projects. This move signals strong confidence in AI’s potential to drive digital transformation and economic growth across the continent.
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