Microsoft to put $5 billion into Australian cloud infrastructure

Microsoft is set to invest $5 billion into infrastructure to support cloud and AI workloads.

The vendor said it would grow its data centre footprint across Canberra, Melbourne and Sydney from 20 sites today “to a total of 29”.

The money is set to be spent over the next two years, with Microsoft touting it as the “single largest investment in its 40-year history in the country.”

In addition to building more data centres, the company said it will launch a ‘Datacentre Academy’ with TAFE NSW in early 2024.

“The academy’s curriculum will align with core operational roles, including those of data centre technicians, critical environment specialists, inventory and asset management professionals, and IT operations personnel,” it said.

The investments come almost two months after a sizable outage of Microsoft’s Azure cloud in Australia that impacted large enterprises including Bank of Queensland and Jetstar.

Microsoft said that $5 billion would buy it an “approximately 250 percent increase [in] its computing capacity over the next two years.”

“This will enable the company to meet the growing demand for cloud computing services,” it said.

Also today, Microsoft said it would work with the Australian Signals Directorate “on an initiative called the Microsoft-Australian Signals Directorate Cyber Shield (MACS), aimed at improving protection from cyber threats for Australian residents, businesses and government entities.”

“The collaboration will enhance the government and Microsoft’s joint capability to identify, prevent and respond to cyber threats,” the two organisations said.

“MACS will include the evolution of national threat intelligence sharing capabilities, with a focus on detecting, analysing and defending against sophisticated nation-state cyber threats.”