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Microsoft will invest 1.6 trillion yen ($10 billion) in Japan between 2026 and 2029 to expand artificial intelligence infrastructure and enhance cybersecurity cooperation with the government, Reuters reports.
The investment aims to address Japan’s growing need for AI expertise while supporting Prime Minister Sanae Takaichi’s goal of promoting growth through advanced technologies and ensuring national security. The plan includes training 1 million engineers and developers by 2030.
The announcement came during a visit to Tokyo by Microsoft’s Vice Chair and President Brad Smith. The company stated it will collaborate with local firms such as SoftBank and Sakura Internet to boost Japan’s AI computing capacity.
This initiative will enable companies and government agencies to store sensitive data within Japan while utilizing Microsoft Azure services. Microsoft will also increase cooperation with Japanese authorities regarding intelligence sharing on cyber threats and crime prevention.
According to Microsoft, Japan’s adoption of AI has surged since 2024, with approximately one in five working-age individuals using generative AI tools. The country is projected to face a shortfall of over 3 million AI and robotics workers by 2040, as estimated by government sources.
“This investment supports the Japan’s vision for a digitally transformed economy,” Smith said. “We believe that developing local talent is essential for sustainable growth and innovation.”
Microsoft’s collaboration with domestic companies will help build a robust AI ecosystem in Japan, leveraging local expertise and addressing the impending workforce shortage in the technology sector.
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