Microsoft invests A$25 B in Australia

• Largest-ever company investment in Australia will expand in-country computing and AI capacity by the end of 2029
• Commitment to government’s expectations for data centres and AI infrastructure developers
• Strengthening Australia’s national defence by expanding Microsoft-ASD Cyber-Shield to critical government agencies and deepening collaboration with Home Affairs. ASD stands for the Australian Signals Directorate
• Australia’s largest-ever AI skilling commitment to provide three million Australians workforce-ready AI skills by 2028
• Enhancing safe and responsible AI through collaboration with Australian AI Safety Institute and industry-first dialogue with workers

Alongside Australian PM Anthony Albanese, Microsoft Chairman and CEO Satya Nadella announced Microsoft’s largest-ever investment in Australia on 23 April. By the end of 2029, the company will invest A$25 B in new digital infrastructure, alongside new commitments to national cyberdefence capability and workforce skilling programmes. 

This commitment will significantly expand Microsoft’s Azure AI supercomputing and cloud infrastructure in Australia, see Microsoft collaborate with the Australian AI Safety Institute, expand the Microsoft-ASD Cyber-Shield to additional government agencies, deepen collaboration on national resilience with the Department of Home Affairs, and equip 3 million Australians with workforce-ready AI skills. 

“We want to make sure all Australians benefit from AI. Our National AI Plan is all about capturing the economic opportunities of this transformative technology while protecting Australians from the risks,” said PM Anthony Albanese. 

“Microsoft’s long-term investment in our national capability will help deliver on that plan – strengthening our cyberdefences and creating opportunity for Australian workers and businesses.”

“Australia has an enormous opportunity to translate AI into real economic growth and societal benefit,” said Satya Nadella, Chairman and CEO, Microsoft. 

“That is why we are making our largest investment in Australia to date, committing A$25 billion to expand AI and cloud capacity, strengthen cybersecurity, and expand access to digital skills across the country.”

These initiatives are designed to help Australia seize its opportunity to become a world leader in AI-driven innovation and ensure the nation leads in the safe, inclusive uptake of AI across all industries, aligned to the government’s National AI Plan.

The A$25 B in capital and operational expenditure by the end of 2029 will significantly expand Microsoft’s Azure AI infrastructure across Australia, enhancing local AI supercomputing capacity and deploying advanced AI processors to support the next generation of AI innovation, data, and applications. 

Microsoft will see increased growth across Commercial Cloud and AI/GPU offerings for customers in its Australian cloud regions, with plans under way to expand its existing footprint by more than 140% by end-2029. The investment further boosts the in-country cloud and AI capacity, resilience and security that Australian organisations need to operate with confidence.

The investment is underpinned by a memorandum of understanding (MoU) with the Australian government, affirming Microsoft’s commitment to the Government’s recently released expectations of data centres and AI infrastructure developers. These expectations are built around five national priorities: 

• Supporting Australia’s national interest
• Driving the clean energy transition
• Using water sustainably
• Investing in Australian skills and jobs 
• Strengthening local research and innovation capability

Microsoft’s commitments – from its achievement of 100% renewable energy to match our energy consumption and water-positive operations by 2030, to local job creation and continuing to provide a powerful cloud-based development platform and access programmes for Australian startups – are designed to reflect the values Australians expect of infrastructure at national scale.

To ensure AI infrastructure growth is safe as well as sovereign, Microsoft will also be collaborating with the newly-established Australian AI Safety Institute. Microsoft will support the Institute’s mandate to monitor, test and evaluate advanced AI systems, including collaboration on human-AI interaction risks in companion chatbots and conversational AI systems, while reinforcing Microsoft’s commitment to responsible AI deployment across the Australian economy.  

Strengthening Australia’s national cybersecurity

Microsoft is building on the Microsoft–Australian Signals Directorate Cyber Shield (MACS) partnership established in 2023 and will expand its collaboration with the ASD, Home Affairs and the Digital Transformation Agency to protect Australia’s most critical government systems and infrastructure. Microsoft’s investment in MACS will be extended to cover additional federal agencies, delivering improved security configuration and threat visibility across the government’s existing Microsoft technology investment. 

Since its inception, the MACS programme has already secured more than 38,000 government accounts, identified 35 previously unknown vulnerabilities, and delivered a bespoke engineering solution with Microsoft Sentinel, allowing customers to more easily integrate into the government’s Cyber Threat Intelligence Sharing programme.

Beyond technology, Australia’s cyber resilience requires deep, sustained partnership between government and industry. Microsoft and the Australian federal government have agreed to collaborate to support Australia’s digital economic resilience and national security. With the Australian Department of Home Affairs, they will create a shared approach to trusted private public cooperation to strengthen Australia’s national and economic resilience. Priority areas for engagement will include connectivity, data centre and hyperscale cloud infrastructure resilience. 

Providing 3 million Australians with workforce-ready skills

Microsoft will train 3 million Australians with workforce-ready AI skills by 2028 – the largest commitment of its kind ever made in Australia. The commitment builds on the company’s previous goal to skill 1 million people across Australia and New Zealand by the end of 2025, which was achieved ahead of time, and underscores the urgency and demand for these skills as AI reshapes every industry and every role.

Microsoft Elevate for Educators was launched in Australia as well. This free programme helps teachers and school leaders build confidence using AI responsibly. A new partnership with youth platform Anyway (formerly Year13) will bring a free AI-powered career coach to up to 1,000 Australian schools, giving students personalised guidance at a critical decision-making juncture in their lives.

To strengthen nonprofit leadership with responsible AI, Microsoft Elevate for Changemakers also launched the same day to support nonprofit and social impact leaders driving practical AI adoption in service of their communities. Designed to meet organisations where they are, the programme builds hands-on skills through free AI readiness credentials, while strengthening internal capability so AI can be used safely, effectively and in line with community expectations.

These skilling commitments follow a landmark AI Workers’ Summit, convened by Microsoft and the Australian Council of Trade Unions – a first-of-its-kind dialogue between the technology sector and Australia’s union leadership about practical, worker-centred AI diffusion.

Said Jane Livesey, President of Microsoft Australia and New Zealand: “Microsoft is committed to helping deliver Australia’s National AI Plan with this historic investment in digital infrastructure, cyber resilience and workforce-ready AI skills. 

"As organisations across government and industry navigate one of the biggest technology shifts of our generation, our focus is simple: building the trusted capability and ecosystem Australia needs to innovate confidently, compete globally, and ensure the benefits of AI are shared widely and equitably.”

Bran Black, Chief Executive of Business Council Australia noted: “This is a global gamechanger for Australia and exactly the kind of investment we need to capture the economic opportunity of the AI era. Microsoft’s A$25 billion commitment to infrastructure and cyber security will support jobs, lift productivity and contribute to long-term economic growth. This shows how Australia can be a leader in AI and the scale of the economic opportunity that comes with it.”

Lucinda Longcroft, Interim CEO, Director of Policy and Government Affairs, Tech Council of Australia stated: “This is a strong endorsement of Australia’s role in the global technology ecosystem, today and into the future. Investment and collaboration of this scale around digital infrastructure, digital skills, and digital security will help drive the integration, adoption and innovation of AI to deliver national benefit.”

Belinda Dennett, CEO, Data Centres Australia said: “Microsoft’s commitment to Australia has been evident over more than 40 years and this takes it to a new level. This investment in new digital infrastructure provides Australia with the opportunity to benefit from and to lead in the most profound technological shift we have ever seen. 

"It will enable digital services for Australians and capture more of the AI value chain locally, supporting high skilled jobs and playing an important role in the energy transition. This is a significant vote of confidence in Australia as a hub for AI infrastructure investment and data centre development.”

Source: Microsoft. Microsoft ANZ President Jane Livesey (second from left) and Minister Tim Ayres (second from right) signed a memorandum of understanding between Microsoft and the Australian government. They were joined by John Galligan, GM, Corporate External and Legal Affairs, Microsoft (left) and Australian Assistant Minister Andrew Charlton (right).

Microsoft invested A$5 B in 2023, growing its Australian data centre presence to 29 sites across three Azure regions, establishing the Microsoft-ASD Cyber-Shield, and providing more than 1 million Australians with digital and AI skills thereafter.

A new analysis from EY-Parthenon estimated that across the 2025 financial year, Microsoft was responsible for US$36 B in local economic contributions, and sustained the equivalent of more than 186,000 full-time jobs.