Microsoft to Invest $3.2 Bn in Sweden to Expand Cloud and AI Infrastructure

Microsoft declares an investment of 33.7 billion Swedish crowns (US$3.2 billion) to expand its cloud and artificial intelligence infrastructure in Sweden over a two-year period.

Reportedly, Microsoft will deploy 20,000 of the most advanced graphics processing units, which speed up computer calculations, at its Swedish data center sites in Sandviken, Gavle, and Staffanstorp.

Generative AI popularity has fuelled the demand for cloud services, and Microsoft President Brad Smith promises more such announcements in the fall.

The company will use Nvidia's faster processors and may turn to semiconductors from AMD and ultimately some of its own chips, Smith said.

In addition, Microsoft states that it is driven to boost AI adoption across the Nordic region, including Denmark, Finland, Iceland, and Norway, apart from Sweden.

The tech giant plans to train 250,000 Swedes with AI skills within organizations, schools, universities, the public sector, and society at large. 

It is also investing in renewable energy and has procured nearly 1,000 MW of renewable energy in Sweden.

"AI is a tech transformation that should be seen as a multiplier or catalyst. It is part of the strategy going forward when, after successfully fighting inflation, we enter a new phase, an investment phase," Ulf Kristersson, Prime Minister of Sweden reportedly said.