Microsoft to Invest $4.8B in AI and Cloud Innovation in Italy

Microsoft to invest €4.8B ($4.3B) in AI and cloud infrastructure in northern Italy over the next two years.

Microsoft said on Wednesday that it would spend 4.8 billion euros ($4.3 billion) over the next two years to improve its artificial intelligence (AI) and cloud infrastructure in northern Italy. In a statement, Microsoft said that the deal would be the biggest investment the U.S. company has ever made in Italy. ItalyNorth, the cloud region, will become one of Europe’s largest Microsoft data centers. It will also serve as a hub for data for the Mediterranean and North Africa.

The office of Prime Minister Giorgia Meloni said in a note that Brad Smith, Chairman of Microsoft, met with her in Rome on Wednesday. The government was pleased about an investment that would make Italy a stronger digital player in the Mediterranean.  Melanie met with Larry Fink, who is in charge of the US fund BlackRock Inc., on Monday. Fink went to Rome to talk about possible investments in data centres and to offer his help with building up electric systems.

BlackRock and Microsoft Launch $30B AI Fund

Last month, BlackRock and Microsoft announced a more than $30 billion fund that will invest in AI-focused data centres, AI supply chains, and energy sourcing. They said the fund would first look at the U.S. market and then at U.S. partner countries.

The need for AI and cloud services is growing quickly. Companies in many fields, like gaming and e-commerce, are differentiating their products by adding custom AI models, which are computer programs that use pattern recognition to make choices.