Microsoft to invest $10 billion in Japan for AI and cyber defence expansion

Microsoft on Friday said it will invest 1.6 trillion yen ($10 billion) in Japan between 2026 and 2029 to expand artificial intelligence infrastructure and strengthen cybersecurity cooperation with the government.

The investment ‌includes the ⁠training ⁠of 1 million engineers and developers by 2030, ​Microsoft said, which was unveiled during a visit to Tokyo ​by Vice Chair and President Brad Smith. In a statement, the company said 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 firms 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, it said. It will also deepen ‌cooperation with Japanese authorities on sharing intelligence related to cyber threats and crime prevention.


Japan's adoption ⁠of AI has accelerated since 2024, with around one in five working-age people using generative AI ​tools, Microsoft 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.