Microsoft Plans to Invest $2.9 Billion to Improve AI and Cloud Infra in Japan

Microsoft plans to invest $2.9 billion to bolster its AI and cloud infrastructure in Japan. The 10 April announcement marks the largest commitment made by the company in its 46-year history of operating in Japan.

To facilitate the growing uptake of artificial intelligence technologies, Microsoft has been strategically investing in expanding its global data and cloud infrastructure. Earlier in February 2024, the company disclosed a $3.4 billion investment aimed at improving its cloud computing and AI infrastructure in Germany.

“Today’s announcement represents Microsoft’s most significant investment in Japan since we set roots here in 1978. These investments in digital infrastructure, AI skills, cybersecurity, and AI research are essential ingredients for Japan to build a robust AI Economy,” Brad Smith, Vice Chair and President of Microsoft, said in the press announcement.

In addition to infrastructure, Microsoft will also be expanding its digital training program in the country. The company plans to provide AI skill training to 3 million full- and part-time workers across Japan over the next 3 years. It will also establish Japan’s first Microsoft Research Asia lab in Tokyo.

With these plans and its continued support of programs promoting the adoption and application of AI tools, the company aims to become an AI powerhouse in the country.

“The steps we are taking today to empower Japanese citizens through AI technologies and programs—whether job training and skilling, improvements to infrastructure capacity, or new research investments—will, in the aggregate, help accelerate this process of beneficial innovation,” Kevin Scott, Chief Technology Officer and Executive Vice President of AI at Microsoft said in a statement.

After the launch of ChatGPT in 2022 and several other generative AI applications, several data center operators, including Google, Amazon, Microsoft, and Akamai have been making plans to establish global hyperscale data and cloud facilities.