Microsoft to invest $3.44 billion in Germany in two years

With its biggest investment in Germany in the past 40 years Microsoft aims to double the capacity of its AI and data centre infrastructure in the country and expand its training programmes, said President Brad Smith

U.S. software giant Microsoft will invest $3.44 billion in Germany in the next two years, mostly in artificial intelligence, offering a boost to Europe’s biggest economy as it faces its worst slump in 20 years.

We are doing this because of the enormous confidence we have in Germany, Smith said, adding the export-oriented economy had constantly been at the forefront of technological change.

He added Germany came second in Europe for the creation of artificial intelligence based applications and that artificial intelligence was increasingly being adopted by German firms but ranks 11th in Europe for AI skills.

Chancellor Olaf Scholz said the move represented a vote of confidence in Germany which has also recently seen notable investments in the battery, chip and pharmaceuticals sectors.

Scholz, who is trying to strengthen Germany’s business appeal, acknowledged the export-oriented country was feeling the effects of slower economic growth globally.

We are waiting for the time when it grows faster again and then everything will be in place so firms that have invested here and those that invest from Germany are ready, he added.

The DIHK chambers of industry and commerce cautioned earlier that the German economy would decline by 0.5% this year, a second year of recession and the worst downturn in two decades.

Companies have called for Social Democrat Scholz’s unruly three-way coalition with the Greens and pro-business FDP to reform tax and cut bureaucracy.

When asked about red tape and privacy issues, Smith said he hoped to see balanced, practical and thoughtful regulations.

The questions that people ask in Germany are really on the minds of people everywhere. If we can meet the standards here in Germany, we will meet the needs of the world, he added.

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