Microsoft has announced its largest-ever investment in Australia, committing A$25 billion in digital infrastructure, cyber defense, and workforce skills by the end of 2029.

The announcement was made by Microsoft Chairman and CEO Satya Nadella alongside Australian Prime Minister Anthony Albanese and comes as Nadella visits Sydney for a stop on Microsoft’s global AI Tour.

The investment will expand Microsoft’s Azure AI supercomputing and cloud infrastructure across Australia, with plans to grow the company’s existing footprint by more than 140 percent by the end of 2029. It builds on a A$5 billion commitment made in October 2023, which grew Microsoft’s Australian data center presence to 29 sites across three Azure regions and provided more than one million Australians with digital and AI skills.

Microsoft took to LinkedIn to share the announcement, with the company writing that Nadella made the commitment alongside Prime Minister Albanese as part of Microsoft’s global AI Tour.

Nadella says: “Australia has an enormous opportunity to translate AI into real economic growth and societal benefit. 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.”

Prime Minister Albanese says: “Microsoft’s long-term investment in our national capability will help deliver on that plan, strengthening our cyber defences and creating opportunity for Australian workers and businesses.”

Cyber defense and government security

The investment includes an expansion of the Microsoft-Australian Signals Directorate Cyber Shield, known as MACS, to cover additional federal government agencies. Since the program launched in 2023, it has secured more than 38,000 government accounts, identified 35 previously unknown vulnerabilities, and delivered an engineering solution using Microsoft Sentinel to help customers integrate into the government’s Cyber Threat Intelligence Sharing program.

Microsoft will also collaborate with the newly established Australian AI Safety Institute on monitoring, testing, and evaluating advanced AI systems, including work on human-AI interaction risks in companion chatbots and conversational AI. A Memorandum of Understanding signed with the Australian Government commits Microsoft to five national priorities: supporting Australia’s national interest, driving the clean energy transition, using water sustainably, investing in Australian skills and jobs, and strengthening local research and innovation.

Jane Livesey, President of Microsoft Australia and New Zealand, says: “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.”

Three million Australians to receive AI skills training by 2028

The skilling commitment is the largest of its kind ever made in Australia. Microsoft will train three million Australians with workforce-ready AI skills by 2028, tripling its previous goal of one million people across Australia and New Zealand, which was completed ahead of schedule.

Two new programs launch as part of the commitment. Microsoft Elevate for Educators is a free program helping teachers and school leaders build confidence using AI responsibly. A partnership with youth platform Anyway, formerly Year13, will bring a free AI-powered Career Coach to up to 1,000 Australian schools. Microsoft Elevate for Changemakers, also launching today, targets nonprofit and social impact leaders and provides free AI readiness credentials and hands-on skills development.

The announcements follow a first-of-its-kind AI Workers’ Summit convened by Microsoft and the Australian Council of Trade Unions, described as an industry-first dialogue between the technology sector and Australia’s union leadership on worker-centered AI adoption.

Bran Black, Chief Executive of Business Council Australia, says: “This is a global game-changer for Australia and exactly the kind of investment we need to capture the economic opportunity of the AI era. Microsoft’s $25 billion commitment to infrastructure and cyber security will support jobs, lift productivity and contribute to long-term economic growth.”

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