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Like other people said, WP Multisite is the answer. However, it won't be that easy, you'll need to craft a nicely coded theme/s since no "out of the box" theme will do what you need in an automatic way, to the very least you'll need to work out your widgets. Plus, you'll need to define a hub of some sort to distribute your widget's content across the whole network.
But yes, once you do that, it's a snap. You could even create 1000000 blogs from a CSV list or by editing your DB if you want to
Alternatively, you can also use LinkFarmEvolution, it's pretty fast and works well with WP multisite
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