- According to reports, Microsoft plans to invest $2.9 billion in AI data centers in Japan by 2025.
- This is the latest big move by the tech giant to beef up its AI business.
- Microsoft announced in November that it would invest about $3 billion in an AI data center in the UK.
Microsoft is investing significant capital in new AI data centers, and Japan is the latest country to benefit.
The tech giant plans to spend $2.9 billion on AI data centers in Japan by 2025, according to reports from Reuters and Nikkei Asia.
Microsoft will install advanced AI semiconductors at two of its existing data centers in Japan as part of the company's largest ever investment in Japan, Nikkei Asia reported.
Microsoft's investment plans include developing an AI training program for 3 million employees in Japan over three years and bringing AI and robotics research to Tokyo to fund $9.9 million worth of research projects over five years. It also includes building a place. Nikkei Asia reported.
And Microsoft plans to work with the Japanese government to improve its cybersecurity practices, the newspaper reported.
“The competitiveness of every part of Japan's economy…depends on the adoption of AI,” Microsoft President Brad Smith told Nikkei Asia.
“The cybersecurity threat landscape is becoming more challenging,” Smith told Nikkei Asia. “We're seeing damage coming from China, especially Russia, but we're also seeing an increase in ransomware activity around the world.”
According to Nikkei Asia, Smith added that such partnerships between governments and big technology companies are essential to strengthen the country's security.
Nikkei Asia reported that Microsoft will formally announce the investment soon. A Microsoft representative did not immediately respond to a request for comment from Business Insider.
Japan, like the rest of the world, has been racing to catch up to the United States' dominance in artificial intelligence technology and computing. Data sovereignty (a country's control over its own data) is important for countries to protect national security and privacy.
Microsoft has been hit hard by its AI investments. In November, the tech giant announced it would invest £2.5bn in UK data centers to help expand the country's AI infrastructure.
And just this week, Microsoft's Mustafa Suleiman announced that the company is opening an AI hub in London. This could help Microsoft attract the country's top technology talent better than competitors such as Google.