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Microsoft and Google Ramp Up AI Data Center Investments in Europe

On November 11, 2025, tech giants Microsoft and Google made headlines with multi-billion-dollar investments in European AI data centers. 🤖💡

Microsoft plans to invest $10 billion in early 2026 in a mega data center near the southern Portuguese port of Sines. Partnering with British firm Nscale and Start Campus, the project will install 12,600 of Nvidia's latest-generation chips. Brad Smith, Microsoft president, noted that Portugal has become a key hub for data center investment. The Sines site will run on renewable energy and tap into major submarine cables linking the Americas and Europe.

Demand for AI computing has surged over the last five months, with Nscale product director Daniel Bathurst calling it a 'race against time' for players like Microsoft.

On the same day, Google announced its largest investment in Germany: 5.5 billion euros by 2029. Chancellor Friedrich Merz praised the move, saying, 'We are driving growth in Germany.' Google's plans include a new data center and expansion in Hesse, office growth in Berlin, Frankfurt and Munich, and initiatives like renewable wind and solar energy purchases and a heat recovery project to share excess data center heat with local residents. The investment is expected to support around 9,000 jobs annually.

Europe's AI race is heating up, and with these investments, Microsoft and Google are powering the next wave of innovation. 🌍⚡️

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