As part of Microsoft committing a staggering $5 billion investment to bolster infrastructure supporting cloud and artificial intelligence (AI) workloads the tech giant is poised to increase its data center footprint across key Australian cities, specifically Canberra, Melbourne, and Sydney.
Presently maintaining 20 data center sites in these locations, the company has revealed its intention to scale up to an impressive total of 29 data center facilities.
The monumental investment signifies Microsoft’s commitment to strengthening its cloud and AI capabilities in Australia, aligning with the country’s growing technological landscape and is expected to cater to the mounting demand for cloud-based services, AI applications, and digital infrastructure to support various industries, including government, enterprises, and small businesses.
According to Prime Minister, Anthony Albanese, this is a major investment in the skills and workers of the future, which will help Australia to strengthen our position as a world-leading economy.
The funds are earmarked for expenditure over the next two years, with Microsoft proudly labeling it as their “most substantial investment in the country in its 40-year history.”
Alongside expanding the number of data centers, the Microsoft has also announced plans to inaugurate a ‘Datacenter Academy’ in collaboration with TAFE NSW, scheduled to open in early 2024.
According to Microsoft, the academy’s curriculum will align with core operational roles, including those of data centre technicians, critical environment specialists, inventory and asset management professionals, and IT operations personnel.
The investments are being made nearly two months following a significant outage of Microsoft’s Azure cloud in Australia, which had a notable impact on major enterprises such as the Bank of Queensland and Jetstar.
Additionally, Microsoft said the $5 billion investment will result in an “approximately 250 percent increase in its computing capacity over the next two years. “This will enable the company to meet the growing demand for cloud computing services,” it said.
Group Manager WHSE Training & Operational Risk, Andy Lewis commented on LinkedIn,” Any investment is a positive, however, to put all your chickens in the Sydney, Melbourne and Canberra basket is potentially short sighted,”
“Unfortunately, if they don’t rollout multiple DCs in all states/territories it’s going to be a bit of a pointless (and extremely expensive) exercise that us taxpayers will foot the bill for,”
“I think what will also happen is that the actual DCs will not be owned by MS, but longer-term lease agreements with business like CDC, Airtrunk and NextDC,” concluded Lewis.
Meanwhile, Microsoft is also teaming up with the Australian Signals Directorate (ASD) to bolster cybersecurity for residents, businesses, and government entities in Australia.
The collaboration, referred to as the Microsoft-Australian Signals Directorate Cyber Shield (MACS), aims to develop customised, cutting-edge cybersecurity solutions to strengthen protection against cyber threats.