Microsoft said Friday it will invest $10 billion in Japan over the next four years to build artificial intelligence data centers and related infrastructure.
Power-hungry data centers -- warehouse-like facilities that power AI tools from chatbots to image generators -- are springing up worldwide, and the sector is growing particularly fast in Asia.
Microsoft President Brad Smith met Japanese Prime Minister Sanae Takaichi at her office on Friday to announce the investment, said AFP.
Smith said in a statement that it was a "response to Japan's growing need for cloud and AI services".
Businesses in Japan, the world's fourth-largest economy, are keen to get ahead in the fast-moving AI field.
But data centers expansion there is constrained by limited space and relatively expensive electricity.
The US tech giant will collaborate with Japan's SoftBank Group and Sakura Internet to expand domestic tech infrastructure, it said in a press release.
It follows a $2.9 billion two-year investment Microsoft announced in 2024 to bolster the country's push into AI and strengthen its cyber defenses.
The investment unveiled Friday also includes funds to enhance cybersecurity partnerships with Japanese government agencies, and to train one million engineers in cooperation with telecom and tech giants NTT and NEC.
A rush to build data centers in the Asia-Pacific region, especially in India and Southeast Asia, has sparked concerns over the facilities' environmental impact.
That includes increased demand on electricity grids that are often reliant on fossil fuels, and on local water supplies used to cool the hot servers inside.
Microsoft says it has pledged to become carbon negative, zero-waste and "water positive" by 2030.
On Tuesday, the company announced plans to invest more than $1 billion in cloud and AI data center infrastructure and operations in Thailand over the next two years.
