Portugal Competing For EU to Fund a €4 Billion AI Super-Hub

Portugal’s Atlantic coast may soon host one of Europe’s most ambitious technology projects. A Lisbon-led consortium has formally asked Brussels for permission to build a multibillion-euro artificial-intelligence complex in the port city of Sines, promising enough computing power to train the next generation of large language models and other data-hungry tools. If the application is approved, construction could begin as early as the spring of next year, turning a former energy hub into an engine for the continent’s digital transition.

Portugal Rethinks Its Atlantic Coast

Sines has always looked outward: it shipped oil in the 1970s, welcomed cruise liners in the 2000s and, more recently, became the European landing point for trans-Atlantic fibre-optic cables such as EllaLink and 2Africa. These undersea links already make the town a natural gateway for global cloud traffic. A 495-megawatt data-centre campus—Start Campus—is rising on the same shoreline, and the new proposal would sit next door, amplifying the region’s pull on Big Tech and research institutions alike.

What the Factory Would Look Like

The plan calls for 12,500 AI servers fitted with 100,000 Nvidia H100 processors, housed in a 28,000-square-metre facility that would draw about 90 megawatts of power—roughly the demand of a mid-sized Portuguese city. Saltwater cooling, made possible by the Atlantic’s constant flow, is expected to curb energy bills and carbon emissions. Once operational, the complex would rank among the five or six most capable supercomputers on the planet, according to estimates from the project’s technical committee.

The Players Behind the Bid

Public lender Banco Português de Fomento is coordinating the effort with heavyweights such as Microsoft, Altice, NOS, Sonae, pharmaceutical firms Bial and Hovione, Seattle-based Defined.ai and several of Portugal’s top laboratories, including Instituto Superior Técnico and the Fundação Champalimaud. The blend of telecoms, biotech and academia is intended to ensure that the machines are not only built but also filled with meaningful workloads—from drug-discovery pipelines to maritime-surveillance algorithms.

Economic Footprint and Jobs

Project documentation reviewed by Portuguese business daily ECO projects €4 billion in capital expenditure and about 270 direct hires for the first stage—mostly high-level engineers, security analysts and data-centre technicians. Indirect employment, from catering to maintenance, could run into the thousands. Financial models anticipate initial losses but predict breaking even by 2029 and annual profits approaching €300 million by 2035. For foreigners pondering a move, the tight labour market in cloud operations and cybersecurity means competitive salaries and English-friendly workplaces.

The Continental Race for Compute

Brussels launched the EuroHPC Joint Undertaking to keep Europe from relying exclusively on American or Asian infrastructure. More than 20 member-state consortia have filed Gigafactory proposals; Spain’s bid is reportedly larger at €5 billion, and Germany is pushing to upgrade its Jülich centre. Analysts say Portugal’s edge lies in abundant coastal cooling, surplus renewable energy and a policy environment that welcomes outside capital—qualities that may resonate with digital nomads scouting for stable, sun-drenched bases.

What It Means for Residents and Investors

Property prices in Sines have already risen on the back of the Start Campus project, yet they remain well below Lisbon’s. A green-light from Brussels would almost certainly accelerate infrastructure upgrades, from faster commuter trains to new international schools catering to engineers’ families. For existing expats, the venture could translate into more specialised healthcare services and a deeper ecosystem of English-speaking professionals. Venture capital funds based in Lisbon and Porto are likewise eyeing spin-offs in edge-computing, clean-cooling and AI ethics.

The Road Ahead

The European Commission is expected to shortlist winning projects in early 2026. Even a partial grant would unlock national and private money, as the Gigafactory is structured as a public-private partnership. Should Portugal miss out, government officials say they will still pursue a scaled-down facility, underscoring how seriously the country now takes the transition from surfboards to servers.