Microsoft to Invest $4.8 Billion in Italy for AI Infrastructure

Microsoft announced Wednesday (Oct. 2) plans for a €4.3 billion ($4.8 billion) investment in Italy, its biggest investment in the country so far.

The initiative is set to roll out over the next two years, allowing the Big Tech company to expand its cloud and artificial intelligence (AI) data center infrastructure while providing digital skills training to more than 1 million Italians by the end of next year, Microsoft said in a news release.

“Microsoft’s data center expansion in Northern Italy coupled with its commitment to provide extensive AI skills training supports the rising demand for AI compute and cloud services across Italy as organizations look to boost productivity and uncover new breakthroughs with AI,” the company said.

“This landmark investment underscores our long-standing commitment to Italy’s digital transformation,” said Brad Smith, vice chair and president of Microsoft. “By expanding access to our AI technology and expertise, we are equipping the Italian government, businesses, and the broader workforce with the tools to build an AI-driven economy that creates jobs and drives prosperity.”

The multibillion-dollar infusion will make Italy North one of Microsoft’s largest data center regions on the continent and will play a critical part in meeting European data boundary requirements, the release said. The new data center will also serve as a data hub for the Mediterranean and North Africa.

Microsoft also said it plans to roll out new training programs for more than 1 million people in Italy by 2025, focused on AI fluency, technical AI skills, AI business transformation and the promotion of safe and responsible AI development.

This comes shortly after news that a new coalition of tech and finance giants are working together to build a network of data centers that can meet growing global demand for AI.

As PYMNTS reported on Sept. 18, the Global AI Infrastructure Investment Partnership is putting $100 billion into building new infrastructure, with the aim of reducing strain on existing data centers and power sources. The new coalition is being spearheaded by Microsoft, BlackRock and other companies.

“We are committed to ensuring AI helps advance innovation and drives growth across every sector of the economy,” Satya Nadella, the chairman and CEO of Microsoft, said in a news release at the time. “The Global AI Infrastructure Investment Partnership will help us deliver on this vision, as we bring together financial and industry leaders to build the infrastructure of the future and power it in a sustainable way.”

The initiative plans to raise up to $30 billion in private equity financing and invest up to $100 billion. While the investments will be primarily focused within the U.S., the partnership said it may also pursue opportunities in other countries.