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Microsoft makes record $5B investment for Aussie AI infrastructure

Microsoft makes record $5B investment for Aussie AI infrastructure

Boosting computing capacity by 250 per cent, adding nine data centres, working with TAFE and the ASD and training over 300,000 Australians.

Steven Worrall (Microsoft Australia)

Steven Worrall (Microsoft Australia)

Credit: Microsoft

Microsoft is set to invest $5 billion in expanding its hyperscale cloud computing and artificial intelligence (AI) infrastructure in Australia over the next two years.

The funding, which is the largest investment Microsoft has ever made for Australia, is going to a myriad of projects, chief of all being the expansion of its computing capacity by approximately 250 per cent, which the tech giant claimed will allow the company to meet growing demand for cloud computing services. This capacity, in turn, will be needed to pave the way for AI development and usage.

Microsoft also plans to use the funding to add nine more data centres to its local footprint, bringing it up to 29 in total across Canberra, Melbourne and Sydney.

The ongoing tech skills shortage is also being tackled, as Microsoft will work with TAFE NSW to establish a Microsoft Datacentre Academy in Australia in early 2024, with a curriculum aligning to core operational roles such as data centre technicians, critical environment specialists, inventory and asset management professionals and IT operations personnel.

Microsoft also plans to extend its global skills programs to train over 300,000 Australians.

“This is a major investment in the skills and workers of the future, which will help Australia to strengthen our position as a world-leading economy,” said Prime Minister Anthony Albanese.

Additionally, the tech giant will work with the Australian Signals Directorate (ASD) on an initiative dubbed the Microsoft-Australian Signals Directorate Cyber Shield (MACS), which will focus on improving protection from cyber threats via the building of cyber security solutions.

“This is our largest investment in Microsoft’s 40-year history in Australia and a testament to our commitment to the country’s growth and prosperity in the AI era,” said Brad Smith, Microsoft vice chair and president.

“We’re coupling this $5 billion in computing capacity and capabilities with AI and engineering that will strengthen the nation’s cyber defence, including a deeper collaboration with the Australian Signals Directorate.”

Stephen Worrall, managing director of Microsoft Australia and New Zealand, said the investment and initiative announcements “build on our long-term commitment to Australia but are squarely focused on the future”.

“They will not only enable a safer and more secure digital economy, but also provide a platform to foster growth and innovation in the era of AI,” he added.

Last week, Microsoft announced the general availability of its Azure AI Content Safety service, a new solution that helps users detect and filter harmful AI- and user-generated content across applications and services.


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