Microsoft backs Mistral AI, Merlin to invest billions in European AI data centers

Microsoft announced a multi‑billion‑dollar financing deal with French startup Mistral AI to expand its European data‑center capacity. The partnership will deploy thousands of Nvidia Vera Rubin GPUs in France, provide Azure cloud credits and give Microsoft customers access to Mistral’s models such as Mistral Medium 3.5 and OCR 4. Both companies say the collaboration supports European digital sovereignty by offering an alternative to U.S.-controlled infrastructure.

Separately, Spanish real‑estate investment vehicle Merlin disclosed a €7.84 billion plan, dubbed MEGA, to build a network of data centres across Madrid, Barcelona, Zaragoza, Lisbon and other sites. The initiative aims for a total capacity of 730 MW by 2032 and is expected to lift group revenue to about €1.8 billion, more than triple its 2025 level. Merlin’s strategy leverages the Iberian Peninsula’s favorable renewable‑energy costs and submarine‑cable connections to Africa, Asia and the Americas, positioning the region as a hub for AI and cloud services.