Microsoft’s record A$5bn digital investment in Australia targets AI and cybersecurity

Announcing its most ambitious venture in Australia over four decades, Microsoft is channeling A$5 billion towards its digital, AI, and cloud computing infrastructure in the country. This two-year initiative will augment Microsoft’s current 20 local datacentres to a total of 29 across Canberra, Melbourne, and Sydney.

Expansion Details: Answering Australia’s Skyrocketing Demand

With this investment, Microsoft intends to surge its computing capacity by a whopping 250% in the coming two years. A whitepaper by International Data Corporation, under Microsoft’s commission, indicates the potential doubling of cloud computing service demand from A$12.2 billion in 2022 to A$22.4 billion by 2026.

Microsoft pledges A$5bn digital investment in Australia to target AI and cybersecurity. Photo courtesy of Microsoft.

Harnessing AI for Australia’s Economic Boom

The AI-driven economic benefits for Australia, as pinpointed by a report from the Tech Council of Australia and Microsoft, are staggering. Generative AI, if assimilated rapidly, could infuse around A$115 billion annually into Australia’s economic framework by 2030.

Eco-friendly Approach to Infrastructure

Microsoft’s Australian data centres will be shaped with sustainability at the forefront, aiming to be carbon negative, water positive, and zero waste by 2030. The construction phase will emphasize low-carbon materials, while operational strategies encompass renewable energy, advanced water-cooling, and methods to minimize diesel fuel usage.

Skill Building in the Digital Era

Microsoft’s strategic collaboration with TAFE NSW will give rise to the first-ever Microsoft Datacentre Academy on Australian soil by early 2024. Concurrently, the tech giant is dedicated to nurturing an additional 300,000 Australians through its worldwide skills programs, aligning with the broader industry and government objective to cater to 1.2 million tech-centric roles in Australia by 2030.

Bolstering Cybersecurity with Australian Signals Directorate

Marking an enhanced collaboration between Microsoft and the Australian Government, the Microsoft-Australian Signals Directorate Cyber Shield (MACS) is envisaged. Given the alarming 76,000 cybercrime reports lodged with ASD’s Cyber Watch Office in 2021-22, this venture underscores the mutual dedication to fortify the nation’s cyber ramparts, particularly against sophisticated nation-state cyber adversities.

In line with the announcements, Australian Prime Minister Anthony Albanese expressed, “This investment is pivotal for Australia’s journey to fortify our stature as a global economic frontrunner. Ensuring holistic economic growth, sharpening skills for future jobs, and intensifying cybersecurity remain paramount for my administration.”

Microsoft’s Vice Chair and President, Brad Smith, added, “This colossal investment mirrors Microsoft’s unwavering commitment to bolstering Australia’s prosperity in the AI epoch. Coupled with AI, our A$5 billion investment will invariably fortify the nation’s cyber resilience.”