Portugal to back AI gigafactory as customer, not owner

Portugal does not plan to take a direct equity stake in the entity that would run a future AI gigafactory, with the state instead using its €200 million commitment to buy computing capacity.

According to an official source at the Ministry for State Reform, the Portuguese contribution would take the form of contracting part of the computing capacity made available by a gigafactory built in Portugal.

That capacity could then be used by companies, startups, universities, research centres and public administration bodies developing advanced artificial intelligence tools. The ministry said this was therefore neither direct financing of the construction nor, by itself, a state capital participation.

The government told ECOnews that Portugal still wants to submit an Iberian bid with Spain, and that political and technical contacts between the two countries have continued. The final structure of the application is still being prepared for submission by November 12, 2026. If selected, the project in Sines would combine €200 million in Portuguese funds with €200 million in European funding, for total support of €400 million.

The ministry also said more than 60 national and international companies are already involved in AI Gigafactory Portugal, with private investors expected to fund the infrastructure directly. Portugal’s side of the private consortium has been coordinated by Banco Português de Fomento, the state-owned development bank, while the government says it remains focused on hosting a large-scale AI gigafactory in Portugal rather than a smaller associated centre.

Originally published at Eco.pt