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Microsoft lines up $10-billion investment to expand AI infrastructure in Japan
- IBJ Bureau
- Apr 03, 2026
Microsoft has announced that it will invest $10 billion in Japan between 2026 and 2029 to expand artificial intelligence (AI) infrastructure and strengthen cyber-security cooperation with the government.
The investment includes training of 1 million engineers and developers by 2030, Microsoft has added in a statement.
The company has said that the plan aligns with Prime Minister Sanae Takaichi’s goal to boost growth through advanced, strategic technologies, while safeguarding national security.
Microsoft will work with domestic companies, including SoftBank and Sakura Internet, to expand Japan-based AI computing capacity, allowing companies and government agencies to keep sensitive data within the country, while accessing Microsoft Azure services, the statement has stressed.
Microsoft will also deepen cooperation with the Japanese authorities on sharing intelligence related to cyber threats and crime prevention, the company has said.
Japan’s adoption of AI has accelerated since 2024, with around one in five working-age people using generative AI tools, Microsoft has said, citing its own data.
Japan faces a projected shortfall of more than 3 million AI and robotics workers by 2040, according to government estimates.
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