Microsoft will invest $10bn in Japan to boost artificial intelligence and cyber defence, the company has announced.
The investment, worth 1.6 trillion yen, will run from 2026 to 2029 and focus on expanding AI infrastructure and strengthening cybersecurity systems in the country.
The US tech giant said the funding will also support large-scale training for one million engineers and developers by 2030.
The announcement was made during a visit to Tokyo by Microsoft Vice Chair and President Brad Smith, who met Prime Minister Sanae Takaichi.
Microsoft said the plan supports Japan’s goal of growing its economy through advanced technology while improving national security.
The company will work with local firms including SoftBank and Sakura Internet to expand AI computing capacity in Japan.
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The aim is to help businesses and government agencies process sensitive data locally while still using Microsoft Azure cloud services.
Smith described the move as a “response to Japan’s growing need for cloud and AI services”.
Japan has seen fast growth in AI use since 2024, with about one in five working-age people now using generative AI tools, according to Microsoft.
However, the country may face a shortage of more than 3 million AI and robotics workers by 2040, government estimates show.
The investment also comes as Japan increases efforts to expand data centre capacity to support AI growth, despite challenges such as limited land and high electricity costs.