Microsoft To Invest $4.8 Bn In AI And Cloud Infrastructure In Italy

Microsoft has declared plans to invest USD 4.8 billion over the next two years to improve its artificial intelligence (AI) and cloud infrastructure in northern Italy. This is the tech company's greatest investment in Italy to date.

Microsoft stated that the investment will transform the Italy North cloud area into one of its largest data centres in Europe, functioning as a data hub for both the Mediterranean and North Africa. On Wednesday, Microsoft Vice Chair and President Brad Smith met with Italian Prime Minister Giorgia Meloni in Rome. The Italian Prime Minister's Office issued a statement applauding the investment, talking about how it will improve Italy's digital position in the Mediterranean.

Earlier this week, Prime Minister Meloni met with BlackRock CEO Larry Fink to discuss possible investments in data centres and energy infrastructure. In September, BlackRock and Microsoft unveiled a more than USD 30 billion joint fund to invest in AI-focused data centres, AI supply chains and energy sourcing, with ambitions to initially target the US market and then expand to US partner countries.

The increased need for AI and cloud services in a variety of industries, including gaming and e-commerce, is encouraging businesses to incorporate AI models that use pattern recognition for decision-making. Microsoft's investment in Italy is part of a larger trend in which companies seek to expand their products using AI and cloud technology.