The investment also comes as Microsoft faces intensifying competition in AI assistants, with its Copilot tool competing against offerings such as Anthropic’s Claude and Google’s Gemini. Microsoft on Thursday said it will invest $17.9 billion in Australia by 2029 to scale up its artificial intelligence (AI) and cloud computing capacity, according to Reuters.
It said that the investment will support the expansion of Azure AI supercomputing and cloud infrastructure, strengthen cybersecurity capabilities and boost AI skills development across the country. CEO Satya Nadella, currently in Sydney as part of the company’s global AI tour, described the move as Microsoft’s largest-ever investment in Australia.
The announcement reflects growing global demand for AI technologies, with Microsoft and peers such as Alphabet, Amazon and Meta expected to collectively spend about $650 billion this year on AI infrastructure, according to Bridgewater Associates.
Microsoft said that it plans to expand its commercial cloud and AI capacity in Australia by more than 140 per cent by 2029, including greater availability of graphics processing units for customers.
The investment also comes as Microsoft faces intensifying competition in AI assistants, with its Copilot tool competing against offerings such as Anthropic’s Claude and Google’s Gemini. The company has been accelerating development to improve adoption of its AI products.
Josh Gilbert, eToro Analyst said that the move highlights Australia’s emergence as a key AI market and is aimed at strengthening Microsoft’s enterprise presence while securing long-term demand for its Azure platform.
Australian Prime Minister Anthony Albanese welcomed the announcement, saying it would drive economic growth, expand opportunities and support workforce development. The government also said it would work with Microsoft to plan infrastructure needs and enhance energy systems to support the expansion.
Published On Apr 23, 2026 at 10:57 AM IST
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