On Tuesday, November 11, 2025, Microsoft unveiled plans to invest $10 billion in a new AI data hub in Sines, a coastal city about 150 km south of Lisbon. The initiative marks one of Microsoft’s largest European investments to date and aims to bolster the region’s role in the global AI supply chain Blockonomi The Economic Times.
The project is being developed in partnership with:
Start Campus, a Portuguese data center developer
Nscale, a UK-based AI infrastructure startup
NVIDIA, which will supply 12,600 advanced GPUs for the facility The Economic Times
The Sines hub will serve as a next-generation AI and cloud computing center, designed to meet surging demand for high-performance computing, machine learning, and data storage across Europe. It will also support Microsoft’s efforts to reduce reliance on U.S.-based infrastructure and improve data sovereignty for European clients Blockonomi The Business Times.
Microsoft President Brad Smith shared the investment details during the Web Summit in Lisbon, emphasizing the company’s commitment to sustainable growth, digital transformation, and job creation. The hub is expected to support thousands of jobs annually and contribute to Portugal’s ambition to become a tech innovation leader aicep Portugal Global.
This announcement follows similar moves by Amazon Web Services and Google, intensifying competition in Europe’s cloud and AI infrastructure market.
Sources:
Blockonomi
The Economic Times
The Business Times
RTÉ
Portugal Global
