Microsoft to Invest $10.5 Billion in Portugal Data Center Park
Microsoft is investing $10.5 billion in a data center park located in Sines, Portugal, approximately 150 km south of Lisbon. Teh project is a collaboration with Portuguese company Start Campus and UK startup Nscale. Microsoft President Brad Smith revealed the funding plans at the web Summit conference in Lisbon, as first reported by local newspaper Jornal de Negócios.
A Microsoft spokesperson confirmed the investment amount, while a representative from Start Campus indicated the figure aligns with ongoing negotiations for the next phase of expansion following the opening of the first of six planned buildings in March.
This significant investment comes as Microsoft expands its IT infrastructure to meet rapidly growing demand for artificial intelligence services. In October, the company already finalized a multi-year contract to lease premises in Sines.
To address current capacity shortages, Microsoft has also recently contracted with “neocloud” providers - companies specializing in high-speed cloud computing – including coreweave Inc.and Nebius group NV. The company also intends to lease capacity from Nscale in Norway and the United Kingdom.
Sines, a coastal town of around 15,000 inhabitants, is rapidly emerging as a key investment hub in Portugal. The town benefits from existing undersea cables connecting Europe to Brazil and Africa, with Google planning to add a connection to South Carolina in the near future.
Further bolstering Sines’ growing economic importance, the chinese company CALB Group Co. began construction in May on a $2.3 billion battery factory. Portugal is also actively proposing Sines as the location for a large, EU-backed artificial intelligence factory.
