### Microsoft Makes Landmark $10 Billion Investment in Portugal's AI Data Centre Microsoft has announced a significant investment of **$10 billion** to establish a large-scale artificial intelligence (AI) data centre in Sines, Portugal. This project, set to commence in early 2026, is a collaboration with British firm Nscale and Portuguese developer Start Campus. The data centre will feature **12,600** of Nvidia's latest-generation chips and is touted as one of the largest investments in AI computing capacity in Europe. Microsoft President Brad Smith emphasized Portugal's growing importance as a hub for data centre construction and investment during his visit to the Web Summit in Lisbon, a prominent technology event. The Sines site is strategically located near key submarine telecommunications cables, enhancing its connectivity to the Americas and Europe. The demand for AI infrastructure has surged recently, prompting swift action from tech giants like Microsoft to expand their capabilities in this sector [https://24newshd.tv/12-Nov-2025/microsoft-says-invest-dollar-10-bn-portugal-ai-data-centre][https://www.thehindu.com/sci-tech/technology/microsoft-plans-to-invest-10-billion-in-portuguese-ai-data-hub/article70269714.ece]. ### Overview of Microsoft's Investment Strategy and Project Structure 1. **Investment Details**: - Microsoft is committing **$10 billion** to the AI data centre project in Sines, Portugal. - The investment is part of a broader strategy to enhance AI infrastructure across Europe. 2. **Partnerships**: - The project is a collaboration with **Nscale**, a British firm specializing in AI data centres, and **Start Campus**, a Portuguese developer. - This partnership aims to leverage local expertise and resources for timely project implementation. 3. **Technological Infrastructure**: - The data centre will utilize **12,600** Nvidia chips, indicating a focus on high-performance computing capabilities. - The facility will be powered by renewable energy, aligning with sustainability goals. 4. **Strategic Location**: - Sines is positioned as a critical link for submarine telecommunications cables, enhancing its role in global connectivity. - The site’s location is expected to attract further investments and innovation in the region. 5. **Market Demand**: - The demand for AI infrastructure has increased significantly, with industry experts noting a "crazy" surge in the last five months, prompting rapid expansion efforts by major tech companies [https://www.siliconrepublic.com/business/microsoft-google-european-ai-data-centre-germany-portugal-2025][https://www.verdict.co.uk/microsoft-ai-data-centre-portugal]. ### Supporting Evidence and Data Points - **Investment Amount**: Microsoft’s commitment of **$10 billion** is one of the largest in AI infrastructure in Europe, highlighting the company's aggressive expansion strategy [https://www.businesstimes.com.sg/companies-markets/telcos-media-tech/microsoft-invest-us10-billion-portugal-ai-hub]. - **Technological Capacity**: The installation of **12,600** Nvidia chips underscores the project's scale and technological ambition [https://www.freemalaysiatoday.com/category/business/2025/11/12/microsoft-says-to-invest-us10bil-in-portugal-ai-data-centre]. - **Renewable Energy Commitment**: The data centre will be powered by renewable energy, reflecting a commitment to sustainability in tech infrastructure [https://www.hindu.com/sci-tech/technology/microsoft-plans-to-invest-10-billion-in-portuguese-ai-data-hub/article70269714.ece]. - **Strategic Location Benefits**: The Sines site’s proximity to submarine cables enhances its connectivity, making it a strategic choice for data centre development [https://www.verdict.co.uk/microsoft-ai-data-centre-portugal]. ### Conclusion: Implications of Microsoft's Investment in Portugal **Microsoft's $10 billion investment in Portugal's AI data centre represents a pivotal move in the tech giant's strategy to expand its AI capabilities in Europe.** 1. **Strategic Growth**: This investment positions Microsoft as a leader in AI infrastructure, responding to increasing market demands. 2. **Collaborative Efforts**: The partnership with Nscale and Start Campus highlights the importance of local collaboration in executing large-scale tech projects. 3. **Sustainability Focus**: The commitment to renewable energy aligns with global sustainability trends, enhancing the project's appeal. 4. **Regional Development**: The investment is expected to stimulate economic growth and innovation in the Sines region, potentially attracting further investments. This comprehensive approach not only strengthens Microsoft's technological footprint but also contributes to the broader European AI landscape [https://www.indexbox.io/blog/microsoft-to-invest-10-billion-in-portuguese-ai-data-center][https://blockonomi.com/microsoft-msft-stock-10-billion-portugal-ai-investment-boosts-europe-expansion].