Microsoft’s $5b investment in Australian AI and cloud computing is a significant move

to building Australian data centres was given the ceremonial treatment, with an announcement by Prime Minister Anthony Albanese alongside ambassadors Kevin Rudd and Caroline Kennedy. But behind the national interest pomp, this is very much a commercial play.

In the AI gold rush, the big money is to be made with the picks and shovels. Chipmakers such as NVIDIA have soared, and the more companies build and rely on AI capability, the more Microsoft and AWS must ensure they are doing so on their infrastructure, and with their tools.More data centres on the ground in Australia give Microsoft more capacity to sell, and secure, a reliable home to offer services across the region.

Last year, Gartner says, the Australian IaaS market grew by 37.1 per cent to be worth $2.68 billion, and it isn’t going to slow down any time soon. Every time you see a company talking about digital transformation and AI, you can listen hard and hear tills ringing in Microsoft HQ in Redmond.

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‘Cyber shield’ to be key part of $5b Microsoft investment in AustraliaPrime Minister Anthony Albanese will reveal the plans on the first day of his US visit, promising new jobs in fields such as cloud computing and AI.
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