Microsoft will make its largest-ever investment in Australia, earmarked to improve the country’s AI architecture, cybersecurity and upskilling programs.
The $18 billion expenditure, announced by Microsoft CEO Satya Nadella and Australian Prime Minister Anthony Albanese on Thursday, follows a previous $3.4 billion commitment from the tech giant in 2023 and covers its plans until the end of 2029.
Among the priorities for the new funding is expanding Microsoft’s Azure cloud infrastructure across Australia, boosting the country’s AI compute capacity, and deploying advanced AI processors.
The tech giant is currently building data centers near Canberra, and in New South Wales and Victoria.
The new investment was accompanied by a memorandum of understanding that requires Microsoft to adhere to the Australian government’s recently published list of expectations and requirements for new AI data centers.
Microsoft has also undertaken to collaborate with the recently established Australian AI Safety Institute, an initiative created to test and evaluate AI systems to prevent harm to humans in interactions with AI.
Cybersecurity is covered in the deal with an extension of the Microsoft–Australian Signals Directorate Cyber Shield partnership established in 2023, with more federal agencies joining the program and the vendor strengthening existing protections. In addition, Microsoft will now work more closely with Home Affairs to keep critical government systems secure.
Training has become a key focus, with Microsoft aiming to ensure about three million Australians have workforce-ready AI skills by the end of 2028. The vendor will also introduce its Elevate for Educators AI program.
“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,” Albanese said in a statement. Microsoft’s long-term investment in our national capability will help deliver on that plan — strengthening our cyber defenses and creating opportunity for Australian workers and businesses.”
Microsoft’s investment is another major AI deal for Albanese, whose government has also e entered into agreements with AWS ($13 billion) and OpenAI ($ 5billion) over the past year.
For Microsoft, the Australian agreement marks the continuation of a heavy month of spending, which has seen infrastructure commitments worth billions of dollars made in Singapore, Thailand and Japan.