Foresight

Microsoft to invest nearly $3 billion in Japan to improve its AI data centers

This is the American company's largest-ever investment in an Asian country.

American IT giant Microsoft is set to invest nearly $3 billion (440 billion yen; almost 2.7 billion euros) over two years to expand its data centers in Japan.

The announcement was made during Fumio Kishida's official visit to the United States. This is the first visit by a Japanese leader in nine years, as the two countries deepen their relationship against the backdrop of China's growing assertiveness in the Indo-Pacific region.

This is not only Microsoft's biggest investment in Japan, but also its biggest investment in an Asian country.

In an exclusive interview with NHK, Microsoft's Chairman emphasized the importance of AI-related investments in Japan: “Japan has a huge technology base, but the population is shrinking due to the aging population. It is essential for Japan to harness the power of AI [...] I believe this is an indispensable investment for Japan's future” has he declared.

The data centers will incorporate state-of-the-art semiconductors and other equipment suited to the development and operation of artificial intelligence, capable of processing large amounts of computation.

Microsoft will also expand its digital training program to train just over three million people in AI over the next three years.

According to forecasts by the Japan Federation of Electronics and Information Technology Industries (JEITA), the demand for AI-related services generated in Japan is set to increase by around 15 times year-on-year, reaching almost 1,770 billion yen by 2030.