05:49 AM EST, 11/12/2025 (MT Newswires) -- (Updates to include more details from Microsoft ( MSFT ) in the fourth and fifth paragraphs)

Microsoft ( MSFT ) will invest $10 billion to build an artificial intelligence data center on Portugal's coast, news outlets reported Tuesday.

The data hub will be developed in Sines with Portuguese developer Start Campus and the UK's Nscale, Portuguese newspaper Jornal de Negocios reported, citing Microsoft ( MSFT ) President Brad Smith.

Microsoft ( MSFT ) has already signed a long-term deal to lease capacity at the Sines site as part of its push to expand infrastructure for artificial intelligence services, according to Bloomberg.

"This initiative represents Microsoft's ( MSFT ) largest investment in Portugal and the largest data center deal ever made in the country," Microsoft ( MSFT ) said in a blog post.

"The infrastructure will support advanced AI workloads across multiple industries and is aligned with the Microsoft Digital Commitment for Europe, which provides for doubling the capacity of data centers in 16 European countries by 2027," the company said.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)