Microsoft to invest $10b in Japan

Investment aims to expand AI infrastructure, strengthen cyber defence

TOKYO:

Microsoft on Friday said it will invest 1.6 trillion yen ($10 billion) in Japan between 2026 and 2029 to expand artificial intelligence (AI) infrastructure and strengthen cybersecurity cooperation with the government.

The investment includes the training of 1 million engineers and developers by 2030, Microsoft said, which was unveiled during a visit to Tokyo by Vice Chair and President Brad Smith. In a statement, the company said the plan aligns with Prime Minister Sanae Takaichi's goal to boost growth through advanced, strategic technologies while safeguarding national security.

Microsoft will work with domestic firms including SoftBank and Sakura Internet to expand Japan-based AI computing capacity, allowing companies and government agencies to keep sensitive data within the country while accessing Microsoft Azure services, it said. It will also deepen cooperation with Japanese authorities on sharing intelligence related to cyber threats and crime prevention.

Japan's adoption of AI has accelerated since 2024, with around one in five working-age people using generative AI tools, Microsoft said, citing its own data.