Microsoft announced on Friday that it will invest 1.6 trillion yen ($10 billion) over the next four years as part of the tech giant's Asia-wide push to expand artificial intelligence infrastructure in the region that has seen exponential demand.
Microsoft, the world's largest software maker, will develop cloud and AI infrastructure along with Sakura Internet Inc. and telecom operator SoftBank Corp.
Here is everything you need to know about Microsoft's investment in Japan.
Microsoft's Japan investment plans — What's in it?
The investment made by Microsoft in Japan will see the company training 1 million engineers and developers by 2030, it said. The plan was unveiled during a visit to Tokyo by Vice Chair and President Brad Smith. Additionally, Microsoft will also invest in cybersecurity partnerships.
Microsoft will collaborate with domestic firms, including Sakura and SoftBank, to expand Japan-based AI computing capacity, with the companies supplying graphics processing units and other computing resources.
According to Microsoft, the partnership with the domestic companies will ensure that companies and government agencies can keep sensitive data and information within the country while also gaining access to Microsoft Azure services.
It will also deepen cooperation with Japanese authorities in sharing intelligence on cyber threats and crime prevention.
Microsoft's statement comes as the company's President, Brad Smith, met with Japanese Prime Minister Sanae Takaichi. In its statement, Microsoft said the plan aligns with Prime Minister Sanae Takaichi's goal to boost growth through advanced, strategic technologies while safeguarding national security.
Why Microsoft is choosing Japan for its investment
The US-based tech giant is battling Amazon and Google parent Alphabet for dominance in Japan, which is spending billions to develop a robust AI ecosystem and catch up to the US and China.
Japan’s adoption of AI has accelerated since 2024, with around one in five working-age people using generative AI tools, Microsoft said, citing its own data.
Japan faces a projected shortfall of more than 3 million AI and robotics workers by 2040, according to government estimates.
Microsoft to invest over $6.5 billion in Singapore, Thailand
Earlier this week, Microsoft pledged to invest $5.5 billion in Singapore over the next three years to support the country’s artificial intelligence industry.
In a statement on 1 April, the US giant said it will use the funds to build out cloud and AI infrastructure and support ongoing operations in the city-state. It also plans to offer free AI tools to students.
“We’re focused on helping people and organizations use AI by strengthening skills, increasing cybersecurity and resilience, and advancing trusted governance so technology delivers real benefits for Singaporeans,” Microsoft President Brad Smith said in the statement.
Earlier on 31 March, the company said it plans to invest more than $1 billion in cloud and AI data centre infrastructure and operations in Thailand over the next two years.
As demand for artificial intelligence heats up, tech giants are racing to invest billions of dollars in Southeast Asia, attracted by a growing plugged-in user base.
