Microsoft has announced plans to invest 1.6 trillion yen (approximately $10 billion) in Japan by 2029, focusing on enhancing the country’s artificial intelligence and cloud computing infrastructure. The announcement was made by Brad Smith, Vice Chair and President of Microsoft, during a meeting with Japan’s Minister of Digital Affairs, Sanae Takaichi, in Tokyo, as reported by Kyodo News.
As part of this initiative, Microsoft will collaborate with SoftBank Group Corp. and Sakura Internet Inc., a cloud service provider. Smith emphasized the significance of this investment decision, stating, “We are making the largest investment decision regarding Japan. We can provide the support needed for the Japanese economy in the future.”
The investment will not only target technological advancements but will also focus on developing human resources and enhancing cybersecurity measures. Takaichi expressed her approval of the plan, describing it as “very significant” in terms of Japan’s data sovereignty—a concept that underscores the importance of ensuring that digital data is governed by the laws and regulations of the country where it is created, collected, or stored.
SoftBank is a major player in the investment and technology sectors, while Sakura Internet, based in Osaka, is recognized as a pioneer in Japan’s internet service industry. In 2024, Microsoft had already outlined a two-year investment plan worth $2.9 billion in Japan, which included initiatives for modernizing data centers essential for artificial intelligence applications and supporting cloud computing.
Microsoft's substantial investment in Japan aims to bolster the country's AI and cloud computing sectors while addressing data sovereignty issues. The collaboration with local firms is expected to enhance both technological infrastructure and human resources.
Source: Kyodo News