Microsoft to Invest $4.8 Billion in Italy

Microsoft last Wednesday, October 2, announced its intention to invest 4.3 billion euros ($4.8 billion) in Italy, which is by far the largest volume of financial injections by a technology giant into this country.

A press release published by the mentioned company notes that the specified initiative will be implemented over the next two years. As part of the relevant intentions, the technology giant will expand its cloud and artificial intelligence data center infrastructure in Italy. Also, during the implementation of the investment initiative, Microsoft intends to provide digital skills training to more than 1 million residents of the mentioned country by the end of next year.

The technology giant’s press release notes that the expansion of the data center in northern Italy, combined with its commitment to provide comprehensive training in artificial intelligence skills, supports the demand for computing and cloud services using AI, which is currently on a growth trajectory. In this context, the company separately underlined that organizations are currently striving to increase productivity and unlock new opportunities by applying machine intelligence.

Brad Smith, vice chair and president of Microsoft, said the announced landmark investment underscores the technology giant’s long-standing commitment to Italy’s digital transformation. According to him, the company, by expanding access to its artificial intelligence technologies and expertise, provides the government of the mentioned country, businesses, and the broader workforce with tools to build an AI-driven economy that creates jobs and ensures prosperity.

Microsoft’s press release notes that the investment will make the North of Italy one of the largest Microsoft data center regions on the continent and will play an important role in meeting European data boundary requirements. The new data center will also serve as a data hub for users in the Mediterranean and North Africa.

Besides, Microsoft plans to roll out new training programs for more than 1 million people in Italy by 2025. These programs focus on fluency in artificial intelligence, AI technical skills, business transformation through digital thinking systems, and the promotion of safe and responsible development of cognitive virtual platforms.

It is worth noting that recently the demand for data centers has been showing intensive growth. The corresponding tendency is associated with the active development and spread of artificial intelligence. Data processing centers are necessary to ensure the operation of machine intelligence systems. The mentioned demand will likely continue, as the artificial intelligence industry continues to move on an upward trajectory and shows no signs of slowing down.

Currently, a new coalition of technology and financial giants is working to build a network of data centers. In this case, efforts are aimed at meeting the global demand for artificial intelligence, which is currently on a steady upward trajectory.

Last month, it became known that the Global AI Infrastructure Investment Partnership is making financial injections worth $100 billion into building new infrastructure to reduce strain on existing data centers and power sources. This coalition is being spearheaded by Microsoft, BlackRock, and other companies.

Satya Nadella, the chairman and chief executive officer of Microsoft, said that the technology giant is committed to ensuring that artificial intelligence advances innovation and stimulates growth in all sectors of the economy. According to him, The Global AI Infrastructure Investment Partnership will help the company realize the appropriate vision since in this case, financial and industry leaders unite to build the infrastructure of the future and power it sustainably.

As part of the mentioned initiative, it is planned to raise $30 billion in private equity and make financial injections worth up to $ 100 billion. It is worth noting that these investments will be concentrated mainly in the United States. At the same time, it is possible to use financial resources in other countries.

Returning to the topic of the functioning of data centers and the prospects of the relevant sector, it is worth noting that AI’s power demands are currently expected to surge. For example, Goldman Sachs experts predict data center power consumption will show growth of 160% by 2030.

The mentioned functional objects are equipped with specialized hardware, such as graphics processing units, which are optimized for artificial intelligence workloads. The largest developer of the specified hardware is Nvidia. This company is one of the largest beneficiaries of the so-called artificial intelligence boom. In the summer, Nvidia’s market capitalization crossed the historical mark of $3 trillion.

Currently, the largest technology companies are making multibillion-dollar financial injections into the expansion and improvement of data centers. It is worth noting that within the framework of the operation of the relevant functional facilities, such tasks as energy efficiency and cooling are of vital importance. Currently, in the context of solving the mentioned tasks, solutions such as, for example, locating data centers underwater or in the Arctic are being proposed.

The specified functional objects, empowered by artificial intelligence, will process huge amounts of data in real-time. In this case, reducing latency and improving user experience is expected. Baran Erdogan, a tech advisor at OSM, spoke about the relevant prospects during a conversation with media representatives. According to this expert, the collaboration of companies such as Microsoft and BlackRock to develop data centers driven by artificial intelligence can be a source of innovation in the service area that will change retail and consumer behavior.

Cache Merrill, the founder of the technology firm Zibtek, said during a conversation with media representatives that the role of machine intelligence in the design of data centers goes beyond its previous applications, leading to the development of more complex supply chain management systems.

As we have reported earlier, Microsoft to Invest $2.7 Billion in Brazil.