Microsoft will allocate $10bn (€8.64bn) towards the development of a large-scale AI data centre park in Sines, Portugal, reported Bloomberg.
The company is collaborating with domestic developer Start Campus and UK-based start-up Nscale on the facility.
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Confirmation of the investment was first provided by Microsoft president Brad Smith to Jornal de Negócios, a Portuguese language business newspaper, during Lisbon’s Web Summit.
A Microsoft spokesperson verified the funding amount but declined to provide further details.
Start Campus noted that the figure aligns with current discussions on the next stage of construction following the launch of the site’s first building in March, the first of six planned structures.
Microsoft entered a multi-year lease for capacity at the Sines site in October.
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By GlobalDataThe company has recently secured partnerships with neocloud providers such as CoreWeave and Nebius Group and intends to lease further capacity from Nscale in Norway and the UK.
Sines has become a focal point for digital infrastructure, hosting subsea cables that connect Europe, Brazil and Africa, with additional links planned by Google to South Carolina, according to the Bloomberg report.
Recently, Microsoft and G42 announced a 200MW data centre capacity expansion in the United Arab Emirates (UAE) via the latter’s subsidiary, Khazna Data Centers. This forms part of Microsoft’s $15.2bn UAE investment package and is set for delivery by late 2026.
In the UK, Microsoft had detailed plans for a $30bn spend between 2025 and 2028, focused on AI infrastructure and operations. The commitment includes $15bn earmarked for cloud and AI infrastructure buildout.
As part of this initiative, Microsoft will partner with Nscale to deploy a supercomputer using more than 23,000 Nvidia graphics processing units (GPUs).
Recently, IREN, a Nasdaq-listed data centre operator, secured a five-year, $9.7bn (A$14.84bn) cloud services deal to supply Nvidia GB300 GPUs to Microsoft. IREN will procure the GPUs and equipment from Dell Technologies under a $5.8bn purchase agreement.
