Microsoft said on Friday that it will invest 1.6 trillion yen (about $10 billion) in Japan between 2026 and 2029. The investment will be used to expand its AI infrastructure and improve cybersecurity work with the Japanese government.
Microsoft said the investment also includes training 1 million engineers and developers by 2030. The plan was announced during a visit to Tokyo by Vice Chair and President Brad Smith. The company added that this effort supports Prime Minister Sanae Takaichi’s goal of boosting growth through advanced technologies while also protecting national security.
Microsoft will work with local companies like SoftBank and Sakura Internet to increase AI computing capacity in Japan. This will help businesses and government agencies keep important data within the country while still using Microsoft Azure services.
The company will also strengthen its partnership with Japanese authorities to share information about cyber threats and help prevent cybercrime.
Microsoft plans to work more closely with Japanese authorities on cybersecurity by sharing information about cyber threats and helping prevent crime. The investment will also be used to expand data centres in both eastern and western Japan, using advanced chips and hardware to support high-performance AI systems.
This move is part of Microsoft’s larger strategy in Asia, where demand for AI services is growing quickly. In Japan, the use of generative AI tools is already increasing, with about one in five working-age people using them, according to the company’s data.
The investment also builds on Microsoft’s earlier plans in the region and shows rising competition among global tech companies to develop strong AI systems and local data infrastructure.
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