Microsoft on Friday announced plans to invest 1.6 trillion yen, or about $10 billion, in Japan between 2026 and 2029, as it steps up efforts to expand artificial intelligence infrastructure and strengthen cybersecurity collaboration with the government.
The announcement was made during a visit to Tokyo by Microsoft Vice Chair and President Brad Smith, who met Prime Minister Sanae Takaichi. The company said the initiative aligns with Japan’s strategy to drive economic growth through advanced technologies while ensuring national security safeguards remain in place.
A key part of the plan involves building domestic AI computing capacity in partnership with companies such as SoftBank and Sakura Internet. These collaborations will enable businesses and public agencies to process sensitive data within Japan while accessing Microsoft’s Azure cloud platform.
Microsoft also said it will train 1 million engineers and developers by 2030, addressing a widening skills gap in the country’s technology workforce. Government estimates indicate Japan could face a shortage of more than 3 million workers in AI and robotics by 2040.
Beyond infrastructure, the company plans to deepen cooperation with Japanese authorities on cybersecurity, including sharing intelligence related to cyber threats and supporting crime prevention efforts.
The investment will reportedly include expanding data centre capacity across eastern and western Japan, supported by advanced chips and hardware designed for high-performance AI workloads.
The move is part of Microsoft’s broader push across Asia, where demand for AI services is rising rapidly. Japan, in particular, has seen growing adoption of generative AI tools, with about one in five working-age individuals already using them, according to Microsoft’s data.
The investment follows earlier commitments by the company in the region and reflects intensifying competition among global technology firms to build AI ecosystems and localised data infrastructure.
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