Microsoft to invest $3.2 billion in Swedish AI and cloud to bolster its European footprint

As part of the effort to bolster its presence in Europe, Microsoft announced on Monday that it is investing 33.7 billion Swedish crowns ($3.2 billion) to enhance its cloud and artificial intelligence infrastructure in Sweden over the next two years.

This announcement follows closely on the heels of Microsoft’s $2.1 billion investment in Spain to expand its AI and cloud capabilities, set to unfold over the same two-year period. In addition, the tech giant recently committed 3.2 billion euros ($3.45 billion) to Germany, marking its largest investment in the country in four decades, with a strong emphasis on AI development.

As part of its Swedish expansion, Microsoft said it plans to deploy 20,000 of the latest graphics processing units (GPUs) at its data center locations in Sandviken, Gavle, and Staffanstorp. These advanced GPUs are designed to accelerate computational processes, enhancing the company’s technological capabilities in the region.

“You will see some other announcements, probably more in the fall,” said Microsoft President Brad Smith in an interview, hinting at further strategic developments.

Microsoft’s ambitious plans include utilizing Nvidia’s cutting-edge processors, with potential collaborations involving AMD semiconductors and possibly integrating its own chips, Reuters reported. The rapid advancement of generative AI technology has created a surge in demand for sophisticated chips that can handle these complex applications.

The company is dedicated to fostering AI adoption across the Nordic region, which encompasses Sweden, Denmark, Finland, Iceland, and Norway. In a broader educational initiative, Microsoft aims to equip 250,000 Swedes with AI skills over the next three years, targeting a diverse range of sectors including education, public service, and industry.

Furthermore, Microsoft’s commitment to sustainability is evident in its investment in renewable energy, securing nearly 1,000 megawatts of green power in Sweden.

The surge in generative AI popularity has significantly increased the demand for cloud services, prompting major players like Microsoft and Amazon Web Services to pour billions into developing data centers across Europe. Goldman Sachs projects the AI boom to present a near-$1 trillion opportunity for the tech sector, as companies race to build infrastructure capable of supporting powerful, energy-intensive AI models.