Microsoft to commit USD 2.9 billion investment in Japan data centers amidst artificial intelligence boom

New Delhi [India], April 9 : Microsoft has announced its plan to invest a staggering USD 2.9 billion in data centers across Japan by 2025.
This investment, revealed by Microsoft President Brad Smith in an exclusive interview with Nikkei, marks the company's largest financial commitment to the country.
The initiative comes in response to Tokyo's push for increased computing power to drive advancements in artificial intelligence (AI).
Brad Smith highlighted the critical importance of AI adoption and domestic investment, emphasizing that it has become a "critical national priority for governments around the world."
With Tokyo actively introducing measures to bolster AI computing power domestically, Microsoft's substantial investment is poised to significantly augment Japan's technological infrastructure.
The announcement of Microsoft's investment plans coincides with the visit of Japanese Prime Minister Fumio Kishida to Washington, underscoring the strategic significance of the partnership between Microsoft and Japan.
As part of its investment strategy, Microsoft intends to deploy advanced AI semiconductors at two existing data center sites in eastern and western Japan.
Leveraging its position as the world's second-largest provider of cloud services, Microsoft aims to bolster Japan's technological prowess in AI-related research and development.
In addition to infrastructure investments, Microsoft unveiled plans to launch an AI-related reskilling program in Japan, targeting the upskilling of 3 million workers over the course of three years.
Furthermore, the company plans to establish a new research and development lab in Tokyo dedicated to robotics and AI.
"The competitiveness of every part of the Japanese economy will depend on the adoption of AI," remarked Brad Smith, underlining the transformative potential of AI in sustaining productivity growth amidst demographic challenges.
Microsoft's commitment to Japan extends beyond infrastructure and reskilling initiatives. The company, through Microsoft Research Asia, will allocate 1.5 billion yen (USD 9.9 million) to fund research projects at the University of Tokyo and a collaborative effort between Keio University and Carnegie Mellon University over the next five years.
Moreover, Microsoft pledges to collaborate with the Japanese government to enhance cybersecurity resilience in the face of evolving threats.
Brad Smith emphasized the importance of close cooperation between tech companies and governments to safeguard cyberspace against emerging threats, particularly from entities in China and Russia.
Smith said, "The threat landscape for cybersecurity has become more challenging. We're seeing that from China and from Russia in particular, but we're also seeing growing ransomware activity around the world. A close partnership between leading tech companies and the government is one of the keys for protecting cyberspace."
The investment comes at a pivotal moment as governments worldwide increasingly prioritize "data sovereignty" and domestic development of AI technologies.
Tokyo's regulations on data transfer and storage have spurred cloud platforms like Amazon Web Services (AWS) and Google to ramp up their investments in Japan, signaling a broader trend towards localization of data management and AI capabilities.
As Japan continues to spearhead initiatives like the Hiroshima AI Process, Microsoft remains optimistic about the potential for coordinated efforts among leading economies to establish comprehensive AI governance frameworks.
On February 7, Microsoft unveiled an initiative in India, titled "ADVANTA(I)GE INDIA," with the goal of equipping 2 million individuals with AI skills by the year 2025.
This initiative is a component of Microsoft's larger "Skills for Jobs" program, aimed at empowering India's workforce with future-ready skills to navigate the evolving digital landscape.
India's burgeoning AI research ecosystem and intellectual capital serve as fertile ground for Microsoft's skilling initiative.
Despite being home to only 386 of the 22,000 PhD-educated researchers worldwide, India ranks 10th globally in terms of research output, highlighting the country's growing prominence in the field of AI.
Additionally, India stands out globally, with 44 distinguished presenters at leading AI conferences, reinforcing its position as a hub for cutting-edge AI research.
AI research in India is primarily concentrated in institutes such as the Indian Institutes of Technology (IITs), the Indian Institutes of Information Technology (IIITs), and the Indian Institute of Science (IISc).
Recognizing the importance of fostering both core and applied research in AI, Microsoft proposes a two-tier integrated approach to enhance India's AI capabilities.