4 days ago
Microsoft Commits $400 Million to Expand Swiss AI and Cloud Infrastructure
Microsoft (MSFT, Financials) announced a $400 million investment to expand its artificial intelligence and cloud infrastructure in Switzerland. The company said the funding will support data center upgrades near Zurich and Geneva, helping meet rising demand for AI services across regulated industries such as healthcare, finance, and government. Microsoft noted that over 50,000 existing customers will benefit from the expansion, which also aims to support new organizations while ensuring data remains within Swiss borders.
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According to Microsoft, local demand for Azure OpenAI services has surged since mid-2023, and Switzerland now ranks second globally in GitHub AI contributor share. The company said 31% of Microsoft users in Switzerland engaged with AI tools in the past six months, a three-percentage-point increase, highlighting growing adoption across the region. UBS, one of the world's largest banks, is among the institutions relying on Microsoft's locally compliant infrastructure.
Microsoft said the investment extends its long-standing commitment to Switzerland's digital future, which includes launching local data centers in 2019 and opening the Microsoft Innovation Hub in 2022. The initiative is also part of Microsoft's broader European Digital Commitments, focused on supporting open source, cybersecurity, digital resilience, and AI governance.
The company said it will deepen partnerships with Switzerland Innovation Parks to accelerate the commercialization of AI research and industrial applications. Since 2019, Microsoft has provided more than CHF 30 million in technology resources to over 1,500 startups through its Swiss AI Tech Accelerator and other programs, helping generate over 11,000 jobs. The next cohort for the AI accelerator is scheduled for fall 2025.
As part of its national AI skilling initiative, Microsoft said it plans to train one million people in Switzerland by 2027. The effort will target students, educators, industry workers, and nonprofit organizations, and will be conducted in collaboration with institutions such as FH Schweiz and organizations like Innovate Switzerland and the CyberPeace Institute.
Microsoft also plans to support global AI policy and governance efforts through its partnerships in International Geneva, working with the United Nations and other multilateral organizations to promote responsible AI and deliver training and humanitarian solutions. The company is involved in AI-related programs with agencies such as UNHCR, IOM, OHCHR, and IFRC, and is contributing to cybersecurity and AI governance initiatives with the CyberPeace Institute and the International Telecommunication Union.
In terms of sustainability, Microsoft said its Swiss operations are fully powered by renewable energy. The company also signed a six-year, 27,600-ton biogenic carbon removal and storage agreement with Swiss firm Neustark, covering projects in Switzerland and Germany. Microsoft said these efforts align with its global goal of becoming carbon negative, water positive, and zero waste by 2030.
This article first appeared on GuruFocus.
