Microsoft plans $10 billion investment in Japan to grow AI, train 1 million workers by 2030

Microsoft announced Friday that it will invest 1.6 trillion yen ($10 billion) over the next four years as part of the tech giant’s Asia-wide push to expand its artificial intelligence infrastructure in the growing demand region.

The world’s largest software producer, Microsoft, Sakura Internet Inc. and telecom operator SoftBank Corp. will develop its cloud and artificial intelligence infrastructure.

Here’s everything you need to know about Microsoft’s investment in Japan.

Microsoft’s Japan investment plans — What’s in it?

With Microsoft’s investment in Japan, the company will be able to train 1 million engineers and developers by 2030. The plan was announced during Vice President and President Brad Smith’s visit to Tokyo. Microsoft will also invest in cybersecurity partnerships.

Microsoft will collaborate with domestic companies such as Sakura and SoftBank to expand its Japan-based AI computing capacity, and these companies will provide graphics processing units and other computing resources.

According to Microsoft, the partnership with domestic companies will enable companies and government agencies to keep sensitive data and information within the country and also access Microsoft Azure services.

It will also deepen cooperation with Japanese authorities on intelligence sharing on cyber threats and crime prevention.

Microsoft’s statement came at a time when the company’s President Brad Smith met with Japanese Prime Minister Sanae Takaichi. The plan is in line with Prime Minister Sanae Takaichi’s goal of boosting growth through advanced, strategic technologies while protecting national security, Microsoft said in a statement.

Why does Microsoft choose Japan for investment?

The US-based tech giant is battling Amazon and Google’s parent company Alphabet for dominance in Japan, which is spending billions of dollars to develop a strong AI ecosystem and catch up with the US and China.

Japan’s AI adoption has accelerated since 2024, with nearly one in five working-age people using productive AI tools, Microsoft said, citing its own data.

Japan will face a shortage of more than 3 million artificial intelligence and robotics workers by 2040, according to government estimates.

Microsoft to invest over $6.5 billion in Singapore and Thailand

Earlier this week, Microsoft pledged to invest $5.5 billion in Singapore over the next three years to support the country’s artificial intelligence industry.

The US giant said on April 1 that it would use the funds to build cloud and AI infrastructure and support ongoing operations in the city-state. It also plans to offer free AI tools to students.

“We’re focused on helping people and organizations use AI to ensure the technology delivers real benefits to Singaporeans by strengthening skills, increasing cybersecurity and resilience, and improving trusted governance,” Microsoft President Brad Smith said in a statement.

Earlier on March 31, the company announced plans to invest more than $1 billion in cloud and AI data center infrastructure and operations in Thailand over the next two years.

As demand for artificial intelligence grows, tech giants are racing to invest billions of dollars in Southeast Asia, attracted by its growing internet-connected user base.