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This marks the company’s largest investment in the country so far
Microsoft has announced plans to invest €4.3 billion over the next two years in Italy to expand its cloud and AI infrastructure.
As part of the initiative, Microsoft will also train over 1 million Italians in digital skills by 2025, aiming to support economic growth and tackle demographic challenges.
While what exact scale of thew new infrastructure to be built was not announced, Microsoft says its expansion will make Northern Italy one of Microsoft’s largest data hubs in Europe, supporting data privacy laws and acting as a key digital hub for the Mediterranean and North Africa.
Microsoft says its improved AI capabilities will help to benefit numerous European industries, such as manufacturing, healthcare, finance, and local public services.
“By expanding access to our AI technology and expertise, we are giving Italy’s government, businesses, and workforce the tools to build an AI-powered economy that creates jobs and prosperity,” said Brad Smith, Microsoft’s Vice Chair and President in a press release.
As part of the investment, Microsoft is also launching a national AI skills program to train over 1 million Italians by 2025. The program will cover AI fluency, technical skills, and safe AI use, targeting professionals, students, and people in disadvantaged areas. Partnering with universities, nonprofits, and industry groups, the initiative will help people prepare for the growing AI-driven economy.
A study by Microsoft Italy found that nearly half of Italian companies using AI have already seen productivity rise by over 5%. To support further growth, Microsoft has helped 320 companies launch over 450 AI projects, with many already in use.
The investment also highlights Microsoft’s commitment to sustainability. Its Italian data centers will use renewable energy and water-efficient cooling systems. The company is also working to lower carbon emissions through renewable energy contracts and biofuel-powered backup generators.
News of AI investment from Microsoft has skyrocketed over the last year. Just last month, the company announced a five-year, multibillion-dollar AI partnership with Korea Telecom, aiming to co-develop AI models tailored specifically for the Korean market.
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