Microsoft to invest $400M in Switzerland on AI and cloud computing

Microsoft will plough $400 million into the development of artificial intelligence (AI) and cloud computing infrastructure in Switzerland.

The announcement was made in Bern during a meeting between Guy Parmelin, head of the Department of Economic Affairs, and Brad Smith, Vice Chairman at Microsoft.

According to Reuters, Microsoft currently employs 1,000 people in Switzerland who work at four data centers near Geneva and Zurich. How many new jobs the $400 million investment will create remains unclear.

The money will be used to expand and upgrade the data centers. By allocating this money, Microsoft is responding to an increased demand for AI and cloud computing services in Switzerland.

“Switzerland has created one of the world’s leading innovation ecosystems, blending world-class research with real-world applications,” Smith said in a statement.

This is the second time this year that Microsoft is devoting a large sum of money to spend on improving AI infrastructure.

In January 2025, Smith announced that Microsoft intends to spend $80 billion to build more AI-enabled data centers to train AI models and deploy AI and cloud-based applications around the world. More than half of this amount will be invested in the US to reflect Microsoft’s commitment and confidence in the American economy.

Microsoft isn’t the only company that’s increasing its spending on AI and cloud infrastructure.

Meta has pledged to invest up to $65 billion in enlarging its AI infrastructure. Alphabet is planning to spend up to $75 billion on expanding its AI operation this year.

The Stargate Project, a partnership of several American tech companies from the private sector, is committed to investing $100 billion in the creation of new AI infrastructures in the United States, increasing to $500 billion over the next four years.

Keir Starmer, Prime Minister of the United Kingdom, announced a massive investment plan earlier this year to become a “world leader” in AI.

“Our plan will make Britain the world leader. It will give the industry the foundation it needs and will turbocharge the Plan for Change. That means more jobs and investment in the UK, more money in people’s pockets, and transformed public services. That’s the change this government is delivering,” Starmer promised.