Microsoft to Invest $4.8 Billion on AI, Cloud Infrastructure in Italy — Update

By Kimberley Kao and Mauro Orru

Microsoft plans to spend about $4.75 billion over the next two years in cloud and artificial-intelligence infrastructure in Italy, the latest pledge from U.S. tech giants to bolster their presence overseas amid booming demand for AI services.

The U.S. tech giant said in a statement Wednesday that it would pour 4.3 billion euros ($4.75 billion) to grow its hyperscale cloud and AI data center infrastructure in the country and provide digital skills training to more than 1 million people by the end of next year.

Brad Smith, vice chair and president at Microsoft, said expanding access to AI technology would benefit the Italian government, businesses and the broader workforce to operate in an AI-driven economy.

The investment, Microsoft's largest to date in the country, comes as tech giants bet on expanding their facilities and services to gain an edge over rivals in the AI race. Advancements in AI have ushered in a wave of spending from companies seeking to bolster their offering and satisfy demand for increasingly powerful data centers and cloud services.

Amazon.com said in June that it was planning to invest 17.8 billion euros through 2040 to expand its logistics network and cloud infrastructure in Germany. The e-commerce giant also laid out plans to invest 15.7 billion euros over the next decade to expand its cloud services in Spain.

Microsoft said its investment would make Northern Italy one of the company's largest cloud regions in Europe. A cloud region refers to a cluster of data centers.

The company announced the investment after Smith met Italian Prime Minister Giorgia Meloni in Rome. The Italian government said in a statement that Meloni welcomed the funding pledge since it would support growing demand for AI services in the country and strengthen Italy's role as a digital hub in the Mediterranean.

Write to Kimberley Kao at kimberley.kao@wsj.com and Mauro Orru at mauro.orru@wsj.com

(END) Dow Jones Newswires

October 03, 2024 05:12 ET (09:12 GMT)

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