Nvidia has joined forces with a Portuguese-led consortium in a multi-billion-euro push to bring a major AI gigafactory to Portugal.

The European Union is planning five such facilities, and Portugal is among the nations vying for selection. The American tech giant is collaborating with Banco de Fomento, which is heading the Portuguese bid.

The €4 billion project would centre on a large-scale data centre in Sines, powered by 100,000 advanced graphics processing units (GPUs).

At the Fusion conference in Lisbon, Banco de Fomento chief executive Gonçalo Regalado confirmed that the bid has secured the backing of leading international partners. He said:
“We have the will, we have the agreement, and we have the biggest global players behind the bid. The 100,000 GPUs are guaranteed for the factory to be built in Sines.”

Nvidia produces the H100 processors required for the site, each valued at around €22,000. Its involvement adds considerable weight to Portugal’s application, ahead of the European Commission’s official tender later this year. The proposed facility would create around 270 jobs.

The initiative is also supported by the Portuguese government and civil society organisations, and is competing under the EU’s public-private partnership framework.

Paul Stannard, Chairman and Founder of Portugal Pathways and the Portugal Investment Owners Club, commented:
“Portugal is positioning itself as one of Europe’s rising tech hubs. The tech start-up scene across the country is thriving in Lisbon and Porto, but even cities like Braga are seeing massive progress, with the latter awarded the title of European Capital of Innovation last year.

“The IFICI (NHR 2.0) tax regime incentivises some of these start-ups with benefits such as a flat 20% personal income tax rate for 10 years and exemptions on eligible foreign-sourced income like dividends and capital gains.

“Portugal is perfectly placed for AI investment, and a project like this would really cement the country’s role in the future of global technology innovations.”

The Commission will ultimately choose five gigafactory sites across Europe, representing roughly €20 billion of investment as part of its broader €200 billion InvestAI strategy.

Nvidia’s interest in Portugal does not exclude its involvement in other bids. The company is also supporting a Spanish proposal for a site in Móra la Nova, Tarragona, submitted by a consortium of major technology and industrial firms.

Regalado played down the notion of rivalry between the Iberian neighbours, pointing out that Portugal has opted for a single, unified bid, while Spain has put forward four separate applications.

For Nvidia, the partnership marks another step in its rapid expansion. Now valued at $4.46 trillion and the largest company on the S&P 500, it has recently announced plans to invest up to $100 billion in OpenAI and is moving towards acquiring a stake in Intel.

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About Portugal Investment Owners Club

The Portugal Investment Owners Club, or P Club for short, is a unique investor membership community designed for discerning individuals, families, and organisations committed to exploring and capitalising on life in Portugal and enjoying money-can't-buy experiences and exclusive events.

About Portugal Pathways

Portugal Pathways has supported hundreds of Golden Visa residency-by-investment applications and provides expert guidance through its professional supply chain network on luxury property, wealth management, and tax optimisation, including post-NHR tax regime planning, as well as private healthcare, IFICI tax incentive applications, money transfers and bespoke relocation solutions to enhance life and investments in Portugal.

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