Microsoft to invest $3.5 billion in expanding German data centres

The Microsoft logo at the Digital X internet congress in the Media Park. Microsoft plans to invest almost €3.3 billion ($3.5 billion) in Germany over the next two years to massively expand its data centre capacities for artificial intelligence (AI) and cloud computing applications, Microsoft executive Brad Smith announced. Rolf Vennenbernd/dpa
The Microsoft logo at the Digital X internet congress in the Media Park. Microsoft plans to invest almost €3.3 billion ($3.5 billion) in Germany over the next two years to massively expand its data centre capacities for artificial intelligence (AI) and cloud computing applications, Microsoft executive Brad Smith announced. Rolf Vennenbernd/dpa
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Microsoft plans to invest almost €3.3 billion ($3.5 billion) in Germany over the next two years to massively expand its data centre capacities for artificial intelligence (AI) and cloud computing applications, Microsoft executive Brad Smith announced.

The largest single investment in Microsoft's 40-year history in Germany also includes an AI training programme that aims to reach up to 1.2 million people, Smith said during talks with Chancellor Olaf Scholz in Berlin on Thursday.

The funds will primarily be channelled into the western German state of North Rhine-Westphalia, where Microsoft plans to set up a new cloud region, dpa learned.

The company is seeking to be close to major customers such as pharmaceutical company Bayer and energy giant RWE in order to keep the data latency between the data centres and the applications as low as possible.