The renowned technology company Microsoft announced on Thursday its intention to invest nearly €3.3 billion ($3.5 billion) in expanding its operations in Germany.
This substantial investment will be directed towards doubling the capacity of Microsoft’s “AI and data center infrastructure” in Germany, as stated by vice chair Brad Smith during an event in Berlin alongside Chancellor Olaf Scholz.
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Apart from advancing artificial intelligence (AI) technologies, Microsoft aims to enhance its cloud computing services in Germany, according to Smith.
Acknowledging Germany’s position as a frontrunner in technological advancements, Smith also noted the country’s shortage of AI expertise.
Microsoft’s financial commitment is poised to “facilitate the development of infrastructure to support Germany’s utilization of AI and cultivate the necessary talent pool to meet the demands of emerging job opportunities,” as highlighted by the company’s vice chair.
This investment initiative will encompass a training program designed to upskill up to 1.2 million individuals in new AI proficiencies.
Microsoft’s strategic focus on Germany will bring it into closer collaboration with major corporations based in the country, such as pharmaceutical giant Bayer AG and energy leader RWE.
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The proposed investment represents the largest ever made by Microsoft in Germany over its four-decade history, with a significant portion earmarked for North Rhine-Westphalia, the most populous state in the country, as reported by the news agency DPA.
Hendrik Wüst, the State Premier, characterized the investment as “a significant endorsement for Germany and a substantial contribution to the structural transformation in the Rhine region.”
Scholz Commends Significant Investment
Chancellor Scholz welcomed the investment, emphasizing that it underscores Germany’s commitment to maintaining an open economy.
Scholz expressed that this commitment signifies progress, growth, modernization, and global engagement as foundational elements for future opportunities.
Highlighting Germany’s status as a leading global exporter and investor, Scholz praised Microsoft’s decision to invest in both international ventures and domestic initiatives.
Microsoft’s announcement comes at a crucial time for the German government, offering a positive outlook amidst public discontent and economic challenges.
This investment surpasses Microsoft’s previous financial commitments, with prior investments in the UK and Australia amounting to \(3.14 billion and \)3.25 billion, respectively, falling below the allocated $3.5 billion for Germany.
ab/dj (dpa, AFP)
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