Why is Microsoft investing $3.45 billion in Germany?

Microsoft has announced a €3.2 billion ($3.45 billion) investment in Germany over the next two years to expand its cloud and AI infrastructure and to upskill 1.2 million people in digital skills after recently announcing 2M trainees in India by 2025.

The investment will see Microsoft:

• Expand its cloud region in Frankfurt am Main and build new data centers in North Rhine-Westphalia.
• Offer new training programs focused on building AI skills, developing technical AI capabilities, supporting the AI transformation in businesses, and promoting AI’s safe and responsible development.
• Partner with a professional network of Microsoft-certified training providers, industry partners, universities, non-profit organizations, government agencies, and associations

Microsoft President Brad Smith said the investment was aimed at helping German businesses benefit from AI and continue to be globally competitive. Here are his words:

We want to help the German economy benefit from AI to continue to build on its global leadership position in competitiveness. We see a growing demand for AI applications in key industries such as manufacturing, automotive, financial services, pharmaceuticals, life sciences, and medical technology. As these industries undergo fundamental change due to economic change, it is important to equip companies in Germany with world-leading technology.

German Chancellor Olaf Scholz said the investment was a “very good message” for Germany as a business location.

North Rhine-Westphalia Minister-President Hendrik Wüst said the investment was a “strong signal” for Germany and a “great contribution” to the structural change in the Rhineland region.

The investment is part of Microsoft’s commitment to sustainability and responsible AI. The company has set a goal of using 100% renewable energy for its global operations by 2025. It has also developed a standard for responsible AI for its own AI platforms and services. It has established an AI Assurance Program to share best practices and promote responsible AI practices.

More here.