Microsoft to Invest A$25bn in Australia to Expand AI and Cloud Capacity

Minteesinot Niggusie

Microsoft plans to invest 25 billion Australian dollars by the end of 2029 to expand its artificial intelligence and cloud infrastructure in Australia, marking its largest commitment in the country. The funding will support the growth of Azure AI supercomputing capacity, strengthen cybersecurity systems and accelerate skills development in artificial intelligence, the company said on Thursday.

Chief executive Satya Nadella, speaking during a visit to Sydney as part of a global AI tour, said the initiative reflects rising demand for advanced computing services. “Australia has an enormous opportunity to translate AI into real economic growth and societal benefit,” he said.

Microsoft also plans to increase its commercial cloud and AI capacity for Australian customers by more than 140 percent over the same period, including expanded access to graphics processing units.

The announcement comes amid a broader surge in investment by major technology companies, with Alphabet, Amazon and Meta collectively expected to spend about 650 billion US dollars this year to scale AI-related infrastructure. Australia’s government said it would work with Microsoft to assess future infrastructure demand and reinforce energy systems needed to support the expansion.

The collaboration is expected to provide comprehensive upskilling opportunities for locals in the tech sector.

Tech giants view Australia as a pivotal region for future AI developments.