(MENAFN) Microsoft will pour over 10 billion U.S. dollars into a data center development in Sines, Portugal, company president Brad Smith revealed Tuesday during the Web Summit in Lisbon.

Capital deployment is scheduled to commence in early 2026, introducing 12,600 next-generation Nvidia Blackwell Ultra GB30 graphics cards to the Start Campus location, local media outlets reported.

Microsoft characterized the venture as among Europe's most substantial AI computing commitments, establishing Portugal as a frontrunner in secure and sustainable artificial intelligence advancement.

Smith emphasized Sines' strategic significance as a terminus for transatlantic submarine cables connecting North America and Europe. He said Portugal's affordable energy, favorable climate, and strong broadband infrastructure put it in a strong position to attract future investment.

Portuguese Minister of State Reform Goncalo Matias stated Monday that authorities intend to transform Portugal into a premier European center for AI "gigafactories," with aggregate investments anticipated to surpass 16 billion euros (18.56 billion U.S. dollars). He said the government is backing a national proposal, submitted by Portuguese Development Bank (Banco Portugues de Fomento), for an AI gigafactory in Sines worth about 4 billion euros, combining public and private funds.

The Web Summit, hosted in Lisbon since 2016, convenes international entrepreneurs, corporate executives, and investors to examine technology developments.

This year's gathering, continuing through Thursday, draws more than 70,000 participants, 2,500 startups, and over 1,000 investors. It also includes the China Summit, with a dedicated stage highlighting China's advances in AI, deep-tech research, and industrial transformation. (1 euro = 1.16 U.S. dollars)

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