Microsoft’s plan to invest over ten billion dollars in Portugal has sparked strong interest across Europe. The move was confirmed in Lisbon where the company’s president Brad Smith praised Portugal’s growing digital ambition.
Smith said the investment will help create one of Europe’s most advanced AI gigafactory networks. The funds will support a major data centre expansion in Sines which is already attracting global technology partners.
Microsoft and Nscale recently became first tenants of the Start Campus where thousands of Nvidia cards will be installed. The company calls this one of Europe’s largest investments in secure scalable and sustainable AI capacity.
It also aims to double data centre capability across sixteen European countries by 2027. The Portuguese government says the deal strengthens its bid to lead Europe’s future AI production landscape.
Deputy minister Gonçalo Matias stressed that the country is uniting industry partners to shape Europe’s AI direction. The proposed AI gigafactory project in Sines could reach four billion euros if approved in Brussels.
It will combine public and private financing and aims to drive long term economic growth. Matias said AI may contribute trillions to Europe’s economy by the end of the decade. He pointed to Portugal’s cable links and strong research ecosystem as key strengths for future investment.
Lisbon’s global connectivity and skilled workforce continue to attract major players seeking secure European digital bases. The scale of Microsoft’s commitment signals rising competition in Europe as nations race to capture fast growing artificial intelligence investment opportunities for future economic gains.
