Microsoft has announced a major investment of 33.7 billion Swedish crowns ($3.2 billion) to expand its cloud and artificial intelligence (AI) infrastructure in Sweden over the next two years. This move is part of a broader trend among tech giants like Microsoft and Amazon Web Services to build data centers across Europe in response to the growing demand for cloud services driven by the rising popularity of generative AI.
In recent months, Microsoft has already invested in data centers in the UK, Germany, and Spain. Brad Smith, Microsoft President, hinted at more such announcements expected in the fall.
The investment in Sweden will see the deployment of 20,000 advanced graphics processing units (GPUs) at data center sites in Sandviken, Gavle, and Staffanstorp. These GPUs, primarily from Nvidia, will accelerate computer calculations essential for AI applications. Microsoft may also incorporate chips from AMD and its own semiconductor technologies to meet the increasing demand for advanced computing power.
The race to develop generative AI programs has significantly boosted the need for high-performance chips capable of supporting complex applications. In line with this, Microsoft is dedicated to enhancing AI adoption across the Nordic region, which includes Denmark, Finland, Iceland, Norway, and Sweden. As part of this commitment, the company plans to train 250,000 Swedes in AI skills over the next three years, targeting organizations, schools, universities, the public sector, and society at large.
Furthermore, Microsoft is investing in renewable energy to power its data centers, having secured nearly 1,000 megawatts of renewable energy in Sweden. According to Goldman Sachs, the AI boom represents a near-$1 trillion opportunity for the sector, as tech companies continue to invest in data centers to train resource-intensive large language models.
Swedish Prime Minister Ulf Kristersson emphasized the strategic importance of AI, stating, \"AI is a tech transformation that should be seen as a multiplier or catalyst … It is part of the strategy going forward when, after successfully fighting inflation, we enter a new phase, an investment phase.\"
Reference(s):
cgtn.com
