Last Friday, Microsoft announced it will invest USD10 billion (~RM40 billion) in Japan over the next four years to build artificial intelligence (AI) data centres and related infrastructure. So, what should you know about it?
For your information, energy-intensive data centres, warehouse-sized facilities that support AI tools from chatbots to image generators, are being built around the world, and the sector is growing rapidly, especially in Asia.
A response to Japan’s growing need for cloud and AI services
Moreover, Microsoft President Brad Smith met with Japanese Prime Minister Sanae Takaichi in his office on Friday to announce the investment. Smith said in a statement that this investment is "a response to Japan's growing need for cloud and AI services". Companies in Japan, the world's fourth-largest economy, aim to lead the way in the rapidly growing field of AI.
However, the expansion of data centres in the country is limited by limited space and relatively high electricity costs. The US tech giant will partner with SoftBank Group and Japan's Sakura Internet to expand domestic technology infrastructure, according to a media statement.
In addition, the move follows a USD2.9 billion (~RM12 billion) two-year investment Microsoft announced in 2024 to strengthen Japan's efforts in AI and improve cybersecurity. The investment announced on Friday also includes funds to strengthen cybersecurity cooperation with Japanese government agencies, as well as training one million engineers in collaboration with telecommunications and technology companies NTT and NEC.
Furthermore, the increase in data center construction in the Asia-Pacific region, particularly in India and Southeast Asia, is raising concerns about environmental impacts. This includes increased demand on the fossil fuel-dependent electricity grid, as well as the use of local water to cool hot servers.
Besides that, Microsoft said it pledged to become carbon negative, zero waste and "water positive" by 2030. On Tuesday, the company announced plans to invest more than USD1 billion (~RM4 billion) in cloud and AI data center infrastructure and operations in Thailand over the next two years
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