Microsoft announced an investment of 10 billion US dollars in Japan between 2026 and 2029, setting a record for its investments in the country. The plan includes expanding AI infrastructure and cybersecurity cooperation, as well as collaborating with local giants such as SoftBank to train one million AI professionals by 2030. This move aims to address Japan's digital talent shortage while deepening its global artificial intelligence footprint. Shares of Sakura Internet, a Japanese internet infrastructure provider, surged over 20% at one point during intraday trading.
$Microsoft (MSFT.US)$ It was announced that approximately USD 10 billion will be invested in Japan between 2026 and 2029 to expand artificial intelligence infrastructure, strengthen cybersecurity cooperation, and cultivate talent. This represents the company's largest strategic investment in Japan to date and is a significant extension of its global AI strategy.
According to a report by Reuters, during his visit to Tokyo on April 3, Brad Smith, Vice Chairman and President of Microsoft, held talks with Japanese Prime Minister Sanae Takachi and formally announced this investment plan, which amounts to approximately JPY 1.6 trillion. Microsoft stated that this move aligns closely with Prime Minister Takachi’s policy goals of promoting economic growth through advanced technology and safeguarding national security. The initiative will ensure data processing remains within Japan, maintaining data sovereignty.
Following the announcement, shares of Sakura Internet, a Japanese internet infrastructure provider, surged over 20% at one point during trading. SoftBank Corp. and SoftBank Group also rose by 1.02% and 0.22%, respectively.
Microsoft also announced that it will collaborate with local partners, including Sakura Internet and SoftBank, to provide AI computing resources within Japan. In partnership with five major Japanese IT companies, Microsoft plans to train one million AI professionals by 2030 to address Japan's increasingly prominent digital talent shortage.
Local Computing Power Collaboration: Data Sovereignty as the Core
According to Microsoft's statement, the company has initiated discussions with Sakura Internet and SoftBank regarding the expansion of AI computing facilities in Japan. Sakura Internet provides internet infrastructure services through local data centers, while SoftBank, as Japan's leading telecommunications operator, will jointly supply AI computing power resources, including graphics processing units (GPUs), for the collaborative project.
This collaboration will allow enterprises and government agencies using Microsoft Azure services to retain their data for processing within Japan while supporting the development of advanced AI systems such as large language models domestically. SoftBank and Microsoft Japan are also discussing a joint proposal to enable Azure customers to directly access SoftBank’s AI computing platform.
In terms of security cooperation, Microsoft will deepen collaboration with Japanese government agencies in areas such as cyber threat intelligence sharing and crime prevention, highlighting the dual commercial and security dimensions of this strategic initiative.
Million Talent Initiative: Partnership with NTT Data, NEC, Fujitsu, and Hitachi
In addition to infrastructure construction, Microsoft announced a collaboration with five major Japanese IT companies to advance an AI talent cultivation program aimed at training one million engineers, developers, and AI specialists by 2030. Participating companies include NTT Data Corp., NEC, Fujitsu, and Hitachi.
The Japanese government predicts that the country will face a shortage of over 3 million professionals in the artificial intelligence and robotics sectors by 2040. The talent deficit has become one of the core challenges constraining the long-term development of Japan's digital economy. Microsoft’s talent cultivation initiative directly addresses this structural issue.
Brad Smith emphasized during the announcement of the investment plan that demand for cloud computing and artificial intelligence services in Japan continues to grow. Citing data from its AI Diffusion Report, Microsoft noted that approximately one-fifth of Japan’s working-age population is already using generative artificial intelligence tools, surpassing the global average of about one-sixth. Since 2024, the pace of AI adoption in Japan has notably accelerated, providing strong market demand support for this large-scale investment initiative.
Editor/Jayden