Portugal’s leading telecom operators are set to invest 4.2 billion euros ($4.9 billion) over the next five years in developing high-speed 5G and satellite networks. The investment aims to strengthen the country’s digital backbone and support major projects in artificial intelligence and data center infrastructure.
According to IndexBox, the plan will also expand Portugal’s fibre optic network to regions that remain underserved by mobile or internet services. In addition, the funding will bolster digital connectivity across key transport infrastructures, including roads, railways, ports and airports.
Portugal’s three dominant telecom operators — Altice, NOS, and Vodafone — control more than 90 percent of the national market and are expected to account for the majority of the planned investment. The companies have been central to Portugal’s digital transition, deploying fibre and mobile networks that have made the country one of Europe’s top performers in broadband coverage.
The announcement follows Microsoft’s pledge on Tuesday to invest $10 billion in artificial intelligence infrastructure at the Start Campus data center in the coastal city of Sines. The project, one of Europe’s largest data center developments, will rely heavily on renewable energy as Portugal ramps up production of green hydrogen and other sustainable energy sources.
“Portugal’s geostrategic location … is now central to intercontinental connectivity,” said Infrastructure Minister Miguel Pinto Luz. “This is an opportunity that Portugal cannot, nor will it, waste, with the largest technological investment of all time underway in our country.”
Portugal’s Atlantic coastline positions the nation as a critical gateway for subsea cables linking Europe, Africa, and the Americas — a network that forms much of the backbone of global internet infrastructure. These undersea data routes, coupled with the government’s investment strategy, are expected to further enhance Portugal’s role as a digital and data hub in the coming decade.
The new telecom and satellite initiatives align with the European Union’s broader push for digital sovereignty and high-speed connectivity across the bloc. By expanding network coverage and modernizing infrastructure, Portuguese authorities aim to attract more international technology investments while ensuring rural and remote communities are not left behind in the digital economy.
The coordinated effort between the private sector and the government reflects a growing recognition that advanced digital infrastructure — from 5G to AI — is essential to economic competitiveness, national security, and innovation leadership in Europe.