Microsoft to Invest in AI and Cloud Infrastructure in Italy

MILAN (Reuters) – Microsoft plans to invest 4.3 billion euros ($4.8 billion) over the next two years to strengthen its artificial intelligence (AI) and cloud infrastructure in northern Italy, it announced on Wednesday.

Microsoft (NASDAQ:MSFT) stated that this investment would be its largest in Italy to date. The cloud region ItalyNorth will become one of the biggest Microsoft data centres in Europe and will also serve as a data hub for the Mediterranean and North Africa.

Microsoft Chairman Brad Smith met with Prime Minister Giorgia Meloni in Rome, where the PM’s office noted the government’s support for investments that would enhance Italy’s digital significance in the Mediterranean.

On Monday, Meloni also met with Larry Fink, chief of U.S. fund BlackRock Inc (NYSE:BLK), to discuss potential investments in data centres and support for energy infrastructure.

BlackRock and Microsoft had announced a joint fund worth over $30 billion last month, aimed at investing in AI-focused data centres, AI supply chains, and energy sourcing. The fund will first target the U.S. market before looking at partner countries.

Demand for AI and cloud services is rapidly increasing, with companies in various sectors, including gaming and e-commerce, seeking to differentiate their offerings by integrating custom AI models.

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