Lisbon, November 11: Tech giant Microsoft has announced a $10 billion investment to establish one of Europe’s largest artificial intelligence (AI) and cloud data centers in Portugal, marking a significant milestone in the country’s digital transformation drive.
The new facility, to be built along Portugal’s Atlantic coast, is part of Microsoft’s broader strategy to expand its global AI and Azure cloud infrastructure across Europe. The project is expected to create thousands of jobs, accelerate AI adoption, and strengthen Portugal’s position as a tech innovation hub.
“This investment underscores our commitment to enabling Europe’s AI future,” said Brad Smith, Vice Chair and President of Microsoft. “Portugal’s strong digital talent and renewable energy capabilities make it an ideal location for sustainable cloud growth.”
The project will reportedly integrate next-generation AI servers, quantum-ready architecture, and green energy systems, aligning with Microsoft’s goal of achieving carbon-negative operations by 2030.
Portugal’s Prime Minister welcomed the announcement, calling it a “transformative opportunity” that would position the nation at the forefront of Europe’s digital economy. The government plans to collaborate closely with Microsoft on AI education programs and data governance frameworks.
Analysts say the investment reflects a growing AI infrastructure race in Europe, as U.S. tech giants expand to meet surging demand for generative AI, cloud computing, and secure data localization.
Construction of the data center is set to begin in early 2026, with phased operational rollout by 2028.
