Why is Microsoft investing $400 million in Switzerland?

Microsoft is investing $400 million in Switzerland to expand its cloud computing and artificial intelligence (AI) infrastructure, the company recently announced. The company said the investment will go towards upgrading its four data centres located near Geneva and Zurich, aiming to meet the growing demand for AI and cloud services in the country.

The announcement came during a meeting in Bern between Swiss Economy Minister Guy Parmelin and Microsoft Vice Chair Brad Smith, according to a recent report by Reuters. While Microsoft did not specify how many new jobs the investment might create, the company currently employs around 1,000 people in Switzerland.

The expansion will support both new and existing customers and will allow data to be stored within Switzerland's borders - a key requirement for sensitive sectors such as healthcare, finance, and public services. Microsoft said the move would help strengthen data security and compliance for Swiss clients.

As part of the initiative, Microsoft also plans to expand its partnerships with small and medium-sized businesses and increase training opportunities to help people improve their skills in AI and digital tools.

According to Reuters, in a statement, Brad Smith said Switzerland had created "one of the world's leading innovation ecosystems", combining top-level research with practical applications.