Tech giants Microsoft and Google have unveiled multi-billion-dollar initiatives to expand artificial intelligence infrastructure in Europe, signaling intensified competition in the region's rapidly evolving tech sector. Announced on November 12, 2025, these investments aim to position both companies at the forefront of AI innovation while addressing growing computational demands.
Microsoft revealed plans to invest $10 billion starting early 2026 in a Portuguese mega-data center near Sines, partnering with British firm Nscale and local developer Start Campus. The facility will deploy 12,600 next-generation Nvidia chips, described by Microsoft President Brad Smith as "a cornerstone of Europe's AI future." The location leverages Portugal's renewable energy resources and strategic position along transatlantic submarine cable routes.
Simultaneously, Google committed €5.5 billion ($6.4 billion) through 2029 for German AI infrastructure, including new data centers in Hesse and office expansions in Berlin and Munich. The projects incorporate renewable energy integration and heat-recycling systems for local communities. German Chancellor Friedrich Merz praised the investment as reinforcing Germany's status as a global tech hub.
Nscale Product Director Daniel Bathurst noted the "unprecedented surge in AI infrastructure demand," emphasizing the strategic race to establish computing capacity. Both projects are expected to create thousands of jobs while addressing environmental concerns through green energy partnerships.
