Microsoft to Spend Another $5.4 Billion to Boost AI in Canada

The investment will expand AI and cloud infrastructure, boost cybersecurity and train workers.

Microsoft committed to spending another $5.4 billion in Canada to bolster the country’s digital and AI infrastructure over the next two years.

The investment will take Microsoft’s spending in Canada to a total of $13.7 billion between 2023 and 2027. New capacity as a result of the investment will start to come online in the second half of next year.

As part of the push — hailed by Microsoft as its most important commitment in Canada since it opened its first office in Toronto in 1985, the company is also launching a new program to protect the country’s digital sovereignty and intensifying efforts to train workers for the AI era, according to a blog post by Microsoft Vice Chair and President Brad Smith.

The news was welcomed by Prime Minister Mark Carney, who posted on X, formerly Twitter: “Microsoft’s commitment will create high-paying careers, build Canada’s innovation ecosystem, and empower our researchers and businesses to compete globally. Canada’s new government is securing massive opportunities for Canada’s workers and business.”

According to Microsoft’s own AI Diffusion Leaderboard, Canada currently ranks 14th globally in AI adoption, but according to Smith, more needs to be done to maintain the momentum.

He outlined some of the specifics of the increased funding, explaining: “Our investment expands our Azure Canada Central and Canada East datacentre regions, delivering sustainable, secure, and scalable cloud and AI capabilities.”