Microsoft to invest $10 billion in Japan for AI, cloud infrastructure

Microsoft plans to invest 1.6 trillion yen ($10 billion) in Japan to expand its artificial intelligence and cloud computing infrastructure, a senior executive announced Friday. The investment, running from early 2026 through 2029, will include partnerships with SoftBank Group and Sakura Internet.
Microsoft plans to invest 1.6 trillion yen ($10 billion) in Japan to expand its artificial intelligence and cloud computing infrastructure, a senior executive said Friday. The announcement came during a meeting in Tokyo between Microsoft Vice Chair Brad Smith and Japanese Prime Minister Sanae Takaichi, according to Kyodo News.
Investment details
The investment, set to run from early 2026 through 2029, will include partnerships with SoftBank Group and Sakura Internet. "We can provide the support that the Japanese economy needs for the future," Smith told Takaichi. He said the initiative aims to boost Japan's economic growth by strengthening digital infrastructure critical to future technologies.
Expansion from earlier plan
The move significantly expands Microsoft's earlier $2.9 billion plan announced in 2024 to upgrade data centers and enhance cloud capabilities in the country. The new investment reflects growing demand for AI and cloud services in Japan as businesses accelerate digital transformation.
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Strategic context
The announcement comes amid broader US-Japan cooperation on technology and economic security. Prime Minister Takaichi recently met with President Donald Trump in Washington, where the two leaders discussed economic and security ties, including energy security in the Strait of Hormuz.
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