US ambassador sees $40 billion tech investment wave into Portugal by 2031

LISBON, July 21 (Reuters) - Portugal is set to attract more than $40 billion in U.S. technology investment by 2031, becoming home to Europe's largest hub of American AI infrastructure investment, U.S. Ambassador to Portugal John Arrigo said on Tuesday.

• At a ceremony marking the successful connection of Google's new Nuvem transatlantic cable, he urged Europe to follow Portugal's example and build its digital future with trusted U.S. partners or risk falling behind.

• He said Nuvem was "the clearest sign" of a deepening U.S.-Portugal partnership, adding that "more than $40 billion in U.S. tech investment is expected in Portugal by 2031, making it the largest concentration of American AI infrastructure investment in all of Europe."

• Portugal has more than 2.6 GW of data centre capacity under development, led by the 1.2-GW Start Campus project in Sines, south of Lisbon, which is backed by U.S. investment firm Davidson Kempner.

• The U.S. was Portugal's third-largest foreign investor, with nearly $20 billion in investment stock spanning AI, energy, agriculture and tourism.

• Arrigo said Portugal's sovereign cloud framework strikes a balance, opening enough to keep drawing partners like Google, but disciplined enough to protect what matters.

• "This is exactly the model Europe needs right now," he said, arguing that the choice of Europe isn't about sovereignty and partnership, it's between building the digital future with trusted allies or trying to build it alone and falling behind.

($1 = 0.8767 euros)

(Reporting by Sergio Goncalves; Editing by Mark Porter)