While last week’s Microsoft announcement of a $25 billion injection in Australian data centres and cybersecurity was significant, this was the continuation of decades of investment in the country.
Microsoft launched its first Azure data centres in Australia in October 2014, where it added “an Australian accent” to its global cloud network.
Between 2014 and 2023, Microsoft had grown its Australian data-centre fleet to 20 assets, which expanded to 29 sites in October 2023 through a $5 billion investment.
This saw Microsoft launch its first Australian Datacentre Academy in New South Wales, with a second academy launched in Victoria in March, with a goal to develop job-ready talent for a rapidly expanding data centre sector.
Fast forward to April and Microsoft has made its largest-ever company investment in Australia, focused on developing new digital infrastructure, greater national cyber defence capability and further skills growth.
“Microsoft’s commitment to Australia has been evident over more than 40 years and this takes it to a new level,” Data Centres Australia chief executive officer Belinda Dennett said. “This investment … provides Australia with the opportunity to benefit from and to lead in the most profound technological shift we have ever seen.
“It will enable digital services for Australians and capture more of the AI value chain locally, supporting high skilled jobs and playing an important role in the energy transition.”
Dennet said it was a “significant vote of confidence” in Australia as a data centre hub.
Microsoft Australia and New Zealand president Jane Livesey, on the other hand, said the company was committed to uplifting Australia’s National AI Plan announced in December 2025.
“As organisations across government and industry navigate one of the biggest technology shifts of our generation, our focus is simple: building the trusted capability and ecosystem Australia needs to innovate confidently, compete globally, and ensure the benefits of AI are shared widely and equitably,” she said.
The National AI Plan sets out the Federal Government’s objective to build an “AI-enabled economy” in Australia that is “more competitive, productive and resilient”.
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