Tech Giants Advance AI Infrastructure in Europe with New Projects and Investments

Microsoft and Google are expanding their European operations with two of the largest infrastructure investments announced in recent years.

Google plans to invest €5.5 billion in Germany between 2026 and 2029 to build new data centers, upgrade existing sites, and grow its offices in Berlin, Frankfurt, and Munich. Microsoft will launch a $10 billion AI infrastructure project in Portugal in 2026, adding a new data center in Sines equipped with more than 12,000 NVIDIA GPUs. These mark the companies’ biggest infrastructure commitments in each country.

Both projects include support for environmental initiatives and workforce development. In Germany, Google is introducing carbon-free energy systems and a heat recovery program in Dietzenbach. In Portugal, Microsoft is rolling out training programs and cybersecurity partnerships.

Together, the investments are expected to create jobs, improve energy efficiency, and strengthen AI and cloud capabilities across the region.

Why It Matters: Germany and Portugal will gain broader access to AI computing and cleaner energy through these projects. Each is designed around local priorities, creating lasting value for communities and the economy. They also place strong focus on local compliance in cloud services and data management, shaping the future of technology operations in Europe.

• Google to Build New Data Center in Dietzenbach and Expand Sites Across Germany: The latest investment from Google includes a large data center in Dietzenbach and continued expansion of its Hanau campus, which opened in 2023. The company is also growing its offices in Frankfurt, Berlin, and Munich, where it’s renovating the historic Arnulfpost building to create office space for up to 2,000 employees. In Germany, Google Cloud offers AI development tools such as Vertex AI with Gemini models, along with sovereign cloud solutions designed to meet European legal standards.

• Carbon-Free Energy and Heat Recycling to Power Infrastructure Growth: Google has extended its clean energy partnership with Engie through 2030 to source power from wind, solar, and battery storage. The company expects its German operations to run on 85% carbon-free energy by 2026. In partnership with local utility EVO, Google will also capture excess heat from its Dietzenbach data center and distribute it to more than 2,000 homes. The project is Google’s first heat reuse system in Germany, based on an earlier pilot in Finland.

• Environmental and Water Conservation Projects Near Infrastructure Sites: To help replenish more water than it uses, Google is partnering with the NABU Foundation to restore wetlands in the Büttelborn Bruchwiesen peatlands in Hesse. The project protects groundwater sources and bird habitats near the company’s data centers and continues Google’s efforts to reduce environmental impact while expanding its infrastructure.

• Microsoft’s New Data Center in Sines Will Feature 12,600 NVIDIA GPUs: Microsoft is building a new AI infrastructure site in Sines, Portugal, in partnership with Nscale, NVIDIA, and Start Campus. The project is the largest data center development in the country’s history. The new site will support high-performance AI workloads and expand Microsoft’s European data center network, which the company plans to double by 2027. The hardware investment is also among the largest of its kind in Europe.

• Support for AI Education, Startups, and Public Sector Skills Training in Portugal: In partnership with LinkedIn, the National Institute of Administration, and local universities, Microsoft is expanding digital skills and education programs across Portugal. The initiative focuses on AI training for students and public sector leaders while also supporting 4,700 startups through the AI Innovation Factory. A new agreement with Portugal’s National Cybersecurity Center will enhance cooperation on digital risk management and infrastructure security.

Go Deeper -> Google Announces €5.5 Billion Investment in Germany, including AI Infrastructure, through 2029 – Google Cloud

Microsoft accelerates AI infrastructure in Portugal, marking 35 years of innovation in the country. – Microsoft