Microsoft will invest AU$ 25 billion (US$ 18 billion) in Australia’s digital infrastructure by the end of 2029, marking its largest investment in the country. The announcement coincided with Microsoft Chairman and CEO Satya Nadella’s visit to Sydney during Microsoft’s global AI Tour, and was made in the presence of Australian Prime Minister Anthony Albanese.
The investment will expand Microsoft’s existing cloud footprint in Australia to over 140 percent and increase local AI computing capacity, including deployment of advanced processors. According to a Microsoft blog, the plan includes expanding Azure AI supercomputing and cloud capacity, strengthening cybersecurity partnerships, and collaboration between Microsoft and the Australian AI Safety Institute to enhance the Microsoft-ASD Cyber-Shield.
Satya Nadella, Chairman and CEO, Microsoft, said, “Australia has an enormous opportunity to translate AI into real economic growth and societal benefit, that is why we are making our largest investment in Australia to date, committing AU$ 25 billion to expand AI and cloud capacity, strengthen cybersecurity, and expand access to digital skills across the country.”
Australian Prime Minister, Anthony Albanese, said, “Our national AI plan is all about capturing the economic opportunities of this transformative technology while protecting Australians from the risks. Microsoft’s long-term investment in our national capability will help deliver on that plan – strengthening our cyber defences and creating opportunities for Australian businesses.”
Jane Livesey, President of Microsoft Australia and New Zealand, said, “Microsoft is committed to helping deliver Australia’s National AI Plan with this historic investment in digital infrastructure, cyber resilience and workforce-ready AI skills.”
Numerous political and technology business leaders also expressed their optimism and support for how this new investment will benefit Australia’s digital economy and the national infrastructure.
Belinda Dennett, CEO, Data Centres Australia, added, “Microsoft’s commitment to Australia has been evident over more than 40 years and this takes it to a new level. This investment in new digital infrastructure provides Australia with the opportunity to benefit from and to lead in the most profound technological shift we have ever seen.”
Lucinda Longcroft, Interim CEO, Director of Policy and Government Affairs, Tech Council of Australia, said, “This is a strong endorsement of Australia’s role in the global technology ecosystem, today and into the future. Investment and collaboration of this scale around digital infrastructure, digital skills, and digital security will help drive the integration, adoption and innovation of AI to deliver national benefit.”
This investment by Microsoft aligns with government priorities including clean energy use, sustainable water consumption, and local job creation since the cloud provider contributed AU$ 36 billion (US$ 25 billion) to the Australian economy in the 2025 financial year.
The company will also collaborate with the Australian AI Safety Institute to test and evaluate advanced AI systems, and deepen cooperation with the Department of Home Affairs on national resilience and cybersecurity.