Microsoft to Invest $3.2bn in Sweden

Microsoft announced on Monday a $3.2 billion (33.7 billion Swedish crowns) investment to expand its cloud and artificial intelligence infrastructure in Sweden over the next two years.

The surge in demand for cloud services, driven by the rising popularity of generative AI, has led companies like Microsoft and Amazon Web Services to invest heavily in European data centres. Microsoft recently invested in data centres in the UK, Germany, and Spain, with more announcements expected in the fall, according to Microsoft President Brad Smith.

Microsoft plans to deploy 20,000 advanced graphics processing units (GPUs) at its Swedish data centre sites in Sandviken, Gävle, and Staffanstorp. These GPUs, primarily from Nvidia, will accelerate complex computer calculations. The company may also use semiconductors from AMD and eventually its own chips.

The demand for advanced chips has increased due to the development of generative AI programs. Microsoft aims to enhance AI adoption across the Nordic region, including Denmark, Finland, Iceland, and Norway, by training 250,000 Swedes in AI skills over the next three years. This initiative will target organisations, schools, universities, and the public sector.

In addition to its AI and cloud expansion, Microsoft is investing in renewable energy, securing nearly 1,000 MW of renewable energy in Sweden.

Goldman Sachs projects the AI boom could represent a near-$1 trillion opportunity for the tech sector, as companies continue to invest in data centres to support large language models. Swedish Prime Minister Ulf Kristersson highlighted AI as a significant technological transformation and a catalyst for future investments, particularly after successfully combating inflation.