Microsoft’s A$5 billion investment to boost Australia’s digital capability

The investment is the largest in Microsoft’s 40-year history in Australia.

Microsoft is investing A$5 billion over the next 2 years to expand its hyperscale cloud computing and artificial intelligence (AI) infrastructure in Australia.

The company will also grow its datacentre footprint from 20 to 29; extend its global skills program to offer more than 300,000 people training in AI and cloud technologies; and collaborate with the Australian Signals Directorate on a major cybersecurity initiative.

‘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,’ says Brad Smith, Microsoft Vice Chair and President.

Expanding Australia’s computing capacity

Microsoft’s digital infrastructure investment will grow its computing capacity by around 250%. This will enable the company to meet Australia’s growing demand for cloud computing services, which is expected to almost double from A$12.2 billion in 2022 to A$22.4 billion in 2024. Microsoft will use low-carbon materials and renewable energy to build its new data centres.

The investment will also enable Australia to capitalise on the significant economic and productivity opportunities presented by the latest AI technology. A Tech Council of Australia and Microsoft report found that generative AI – if adopted at an accelerated pace – could contribute as much as A$115 billion a year to Australia’s economy by 2030.

Building Australian tech skills and capability

To support Australia’s goal of having 1.2 million people in tech-related jobs by 2030, Microsoft will extend its global skills program to help more than 300,000 Australians gain the capabilities to thrive in a cloud and AI-enabled economy. The company will provide access to learning resources, certifications and job-seeking tools.

Microsoft is also working with TAFE NSW to open its first Datacentre Academy in Australia in 2024. The academy’s curriculum will align with operational roles, including datacentre technicians and critical environment specialists.

The academy will provide alternative employment pathways into the Australia’s tech sector, with a focus on under-represented groups including women and Indigenous Australians.

Strengthening Australia’s cyber defences

Microsoft will collaborate with the Australian Signals Directorate (ASD) on an initiative called the Microsoft-Australian Signals Directorate Cyber Shield (MACS). The initiative aims to improve protection from cyber threats for Australian residents, businesses and government. Microsoft will work with ASD to build next-generation cybersecurity solutions.

How Austrade helped

John Galligan, General Manager at Microsoft Australia & New Zealand, says, ‘Austrade plays such a valuable role in spotting new opportunities to drive mutual benefit for Microsoft and Australia. This project benefited from our ability to build a connected engagement across a range of government and industry stakeholders in Australia, policymakers, and the Australian Embassy in Washington DC.’

Austrade has supported Microsoft since 2017 to deliver its data centre expansion, including site selection in collaboration with state governments, visa facilitation, and connections across industry.

Austrade has also supported engagement between Microsoft, Australian government departments and the Australian Embassy in Washington DC on policy issues regarding AI investment, cyber security and data centre collaboration opportunities.

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