Microsoft’s $10 Billion Portugal Investment Marks One Of Its Biggest European AI Moves Yet

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The investment marks one of Microsoft’s biggest European commitments in 2025.

  • The planned site will be at Sines, approximately 150 km south of Lisbon.
  • In October, Nscale expanded its partnership with Microsoft to roll out about 200,000 Nvidia AI chips.
  • Microsoft announced a research effort on November 6 focused on creating “superintelligence.”

Microsoft Corp. (MSFT) is reportedly preparing to invest about $10 billion in an artificial-intelligence data-centre complex along Portugal’s Atlantic coast. 

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The allotment marks one of the tech giant’s biggest European commitments in 2025. 

Investment Details 

According to a Bloomberg report, the planned site will be located in Sines, approximately 150 km south of Lisbon, where Microsoft will partner with local developer Start Campus and British cloud-computing startup Nscale. 

In October, Nscale expanded its partnership with Microsoft to roll out about 200,000 Nvidia (NVDA) AI chips across Microsoft’s data centers in both Europe and the U.S. 

Microsoft’s stock inched 0.2% lower in Tuesday’s premarket. On Stocktwits, retail sentiment around the stock shifted to ‘neutral’ from ‘bullish’ territory the previous day amid ‘normal’ message volume levels. 

Why It Matters 

This massive build-out addresses Microsoft’s need to expand its computing infrastructure to meet the booming demand for AI services. The company has already struck a long-term lease for capacity at the Sines location, and has recently entered multiple agreements with “neocloud” providers such as CoreWeave Inc. (CRWV) and Nebius Group NV (NBIS) in order to scale rapidly, stated the report. 

Microsoft’s other investments across Europe include a $30 billion investment to enhance AI infrastructure in the U.K. through 2028, and a $400 million commitment to strengthen Switzerland’s cloud computing presence. 

In September, Microsoft unveiled its most advanced AI infrastructure project yet in Wisconsin, estimated to cost $3.3 billion. Expected to begin operations in early 2026, the data center will deliver 10x the performance of the world’s fastest supercomputer today.

To catch up in the race to dominate the AI narrative, Microsoft, on November 6, announced a research effort focused on creating “superintelligence,” led by Mustafa Suleyman, head of Microsoft AI.

MSFT stock has gained over 21% in the last 12 months. 

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