Microsoft announced a EUR 4.3 billion investment over the next two years to expand its hyperscale cloud and artificial intelligence (AI) data center infrastructure and provide digital skills training to more than 1 million Italians by the end of 2025. This is its largest investment in Italy to date, said Microsoft on Wednesday. This move aims to help Italy maximise the opportunities of AI and contribute to the Italian government's focus on long-term economic growth and demographic challenges, according to Microsoft.
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Boosting AI Capabilities Across Industries
Microsoft will expand its data center in Northern Italy to support the rising demand for AI computing and cloud services across the country, as organisations look to boost productivity and uncover new breakthroughs with AI, the company said.
This expansion will establish Northern Italy as one of Microsoft's largest data center regions in Europe, enabling compliance with local data regulations and positioning it as a critical hub for the Mediterranean and North Africa, Microsoft noted.
By integrating AI into strategic sectors such as manufacturing, healthcare, finance, and public administration, Italy can innovate production processes, improve patient outcomes, enhance financial services, and increase the efficiency of public services. Moreover, incorporating AI into local small and medium-sized enterprises can enable the country to unlock new levels of innovation and entrepreneurship, Microsoft explained.
"This landmark investment underscores our long-standing commitment to Italy's digital transformation," said Brad Smith, Vice Chair and President of Microsoft. "By expanding access to our AI technology and expertise, we are equipping the Italian government, businesses, and the broader workforce with the tools to build an AI-driven economy that creates jobs and drives prosperity."
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AI National Skilling Initiative
To help companies learn about the opportunities of AI for their growth, Microsoft Italy has created the AI LAB program. Over 320 companies have joined the initiative in the past year, creating more than 450 Generative AI projects, with 50 percent already operational, all supported by a network of 30 local partners to enhance innovation, creativity, and productivity.
To support this initiative, Microsoft will launch its AI National Skilling Initiative, focusing on AI fluency and technical skills. A recent study by TEHA Group and Microsoft Italy revealed that the widespread adoption of generative AI could potentially increase Italy's GDP by up to EUR 312 billion over the next 15 years.
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Sustainability and Renewable Energy Initiatives
Microsoft also emphasised its commitment to advancing the sustainability of AI. In Italy, the company has executed three Power Purchase Agreements (PPAs) for renewable energy and is pursuing additional contractual opportunities in the near future.
Microsoft has also cited "AI 4 Italy: Impacts and Prospects of Generative Artificial Intelligence for Italy and Made in Italy," which references The European House - Ambrosetti, a private think tank in its announcement.
