Microsoft To Invest $3.2 Billion In Swedish AI Expansion

Microsoft announced on Monday it is investing 33.7 billion Swedish crowns ($3.2 billion) to expand its cloud and artificial intelligence infrastructure in Sweden over the next two years.

The growing popularity of generative AI has increased the demand for cloud services, prompting companies like Microsoft and Amazon Web Services to invest heavily in building data centres across Europe. Microsoft has already invested in data centres in the UK, Germany, and Spain in recent months.

In an interview, Microsoft President Brad Smith mentioned, “You will see some other announcements, probably more in the fall.”

Microsoft plans to deploy 20,000 of the most advanced graphics processing units (GPUs) at its Swedish data centre sites in Sandviken, Gävle, and Staffanstorp.

These GPUs, which accelerate computer calculations, will include Nvidia’s faster processors, with the possibility of incorporating AMD semiconductors and eventually some of Microsoft’s chips.

Also Read: Microsoft To Invest $2.9 Billion To Expand Japan’s AI Infrastructure

The push to develop generative AI programs has significantly increased the demand for advanced chips capable of supporting these complex applications.

Microsoft is committed to enhancing AI adoption across the Nordic region, which includes Sweden, Denmark, Finland, Iceland, and Norway.

The company aims to train 250,000 Swedes in AI skills over the next three years, targeting organizations, schools, universities, the public sector, and society at large.

Additionally, Microsoft is investing in renewable energy, having secured nearly 1,000 MW of renewable energy in Sweden.

Goldman Sachs estimates the AI boom to be a near-$1 trillion opportunity for the sector, as tech companies invest in data centres to power their large language models.

REUTERS/Chidimma Gold