Data centre and AI spending spree continues over at Microsoft, with Italy earmarked for €4.3 billion investment
Microsoft continues its heavy spending spree in the data centre and artificial intelligence (AI) sector, with Italy being the latest country to receive a huge investment.
Microsoft announced its largest investment in Italy to date, with a €4.3 billion (£3.6 billion) initiative “in the next two years to expand its hyperscale cloud and AI data centre infrastructure and provide digital skills training to more than 1 million Italians by the end of 2025.”
Since November 2023 Microsoft has been making major investments in a number of countries, with the investments typically focused on data centres and AI skills.
Image credit: Microsoft
Microsoft Italy
Microsoft’s announcement on Wednesday of its huge investment into northern Italy aims to help that country maximise the opportunities of AI and to contribute to the focus of the Italian government on long-term economic growth amid a stark demographic challenge.
Microsoft said that it’s data centre expansion in Northern Italy coupled with its commitment to provide extensive AI skills training, supports the rising demand for AI compute and cloud services across Italy as organisations look to boost productivity and uncover new breakthroughs with AI.
With this investment, Italy North will become one of Microsoft’s largest data centre regions on the continent and will play a crucial role in meeting European data boundary requirements. It will also serve as a key data hub for the Mediterranean and North Africa.
“This landmark investment underscores our long-standing commitment to Italy’s digital transformation,” said Brad Smith, Vice Chair and President of Microsoft.
Microsoft president Brad Smith. Image Credit: Microsoft
“By expanding access to our AI technology and expertise, we are equipping the Italian government, businesses, and the broader workforce with the tools to build an AI-driven economy that creates jobs and drives prosperity.”
The software giant said this infrastructure will operate under Microsoft’s AI Access Principles which were created to foster innovation and healthy competition within the rapidly growing AI economy.
Meanwhile the decision to bolster AI skills in the country comes despite Italy’s talent shortage and an ageing population challenge.
Italy might lose about 3.7 million workers by 2040, the number of people projected to depart the workforce, resulting in €267.8 billion in national GDP at present productivity level, the software giant noted, but pointed to new technologies such as AI to help make it possible to maintain the same level of economic well-being.
Microsoft and its partners will introduce new training programs to skill more than 1 million people in Italy by 2025, focused on AI fluency, technical AI skills, AI business transformation, and the promotion of safe and responsible AI development.
“In less than a year, our Cloud Region has support Italian and international companies achieve greater productivity and innovation,” said Vincenzo Esposito, General Manager Microsoft Italy.
“This new investment confirms our commitment for the sustainable growth of Italy by helping organizations harness the power of Cloud and Generative AI while providing Italians with the skills to maximize these technologies. Our Italy North Region will continue in accelerating digital transformation and skills in Italy, ensuring that no one is left behind”.
Global program
Microsoft has been busy over the past eleven months making major investments in Europe and south east Asia, which began with the United Kingdom.
In November 2023 Microsoft made its single largest investment in its forty-year history in the UK, by spending £2.5 billion over the next three years to expand its next generation AI data centre infrastructure in the UK.
The Chancellor visits Microsoft’s West London data centre . Image credit HM Treasury
Microsoft also said it would train more than one million people for the AI economy.
Then in February 2024 Microsoft confirmed it will invest 3.2 billion euros ($3.44 billion) in Germany in the next two years, mostly in artificial intelligence.
Then the focus shifted to Asia, with Microsoft making investments in Japan, Malaysia, Indonesia, and Thailand.
Microsoft said it would invest $2.9 billion in Japan, $1.7 billion in Indonesia, another significant commitments in Thailand, and $2.2 billion investment in Malaysia.
Then last month both Microsoft and BlackRock announced a fund worth more than $30 billion to invest in AI-focused data centres, AI supply chains and energy sourcing.
This week Microsoft was part of the $6.6 billion funding round into OpenAI.
