Microsoft has announced plans to invest A$5 billion ($3.2 billion) in expanding its artificial intelligence (AI) and cloud computing capabilities in Australia over the next two years. This initiative includes not only infrastructure expansion, but also skills training and cyber security enhancements. The goal is to raise computing capacity in the country by 250% in order to meet the growing demand for cloud computing, which is expected to double by 2026 due to the increased prevalence of AI.
Microsoft’s investment aims to establish a stronger presence in Australia, particularly as the country is currently consulting on regulations for AI, following the introduction of the lifelike language program ChatGPT by OpenAI, a company financially backed by Microsoft, in the previous year. In addition to the A$5 billion funding, the tech giant plans to train 300,000 Australians in the skills required to succeed in the digital economy. Furthermore, Microsoft intends to expand its cyber threat information-sharing agreement with the Australian Signals Directorate, the country’s cyber security agency.
According to Australian Prime Minister Anthony Albanese, this investment represents a significant commitment to building the skills and workforce needed for the future. Microsoft Vice Chairman and President Brad Smith emphasized that the spending plan demonstrates the company’s dedication to Australia’s growth and prosperity in the AI era. The managing director for Microsoft Australia, Steven Worrall, added that the investment would not only contribute to a safer digital economy but also provide a platform for growth and innovation in the era of AI.
While Microsoft did not provide specific details on how the A$5 billion would be allocated, it did state that it would significantly increase its computing capacity. This expansion will involve growing its data centre footprint from 20 sites to 29 across Australia.
A recent report co-authored by Microsoft highlighted the potential economic benefits of generative AI, a type of automation that adapts to new data inputs. The report suggested that if Australia quickly adopts this technology, it could contribute A$115 billion per year to the country’s economy by 2030.
Currently, Australia does not have specific regulations for AI. However, copyright lawyers and human rights groups have called for guardrails to protect against bias, copyright infringement, and privacy breaches.
($1 = 1.5838 Australian dollars)
(Reporting by Byron Kaye. Editing by Gerry Doyle)
