Microsoft has pledged a $10 billion investment in AI and cloud capabilities in Japan through the end of 2029.

Revealed in a recent company blog post, this is one of several investment commitments the company has made in Asia of late, including $5.5bn in Singapore and $1bn in Thailand.

The investment will span a four-year period, and according to Microsoft, represents its dedication to "technology, trust, and talent," with the company planning to invest in AI infrastructure, cybersecurity, and training more than one million engineers, developers, and workers in Japan by 2030.

On the infrastructure side, this will include Microsoft's own in-country data centers and hardware, as well as collaborating with "domesting partners to expand AI infrastructure options within Japan."

The new investment pledge builds on Microsoft's previous plans to spend $2.9bn in Japan, made in April 2024.

Brad Smith, vice chair and president of Microsoft, said: “Microsoft is deeply invested in Japan, and today’s announcement will enable us to meet the country’s growing demand for cloud and AI services. We are bringing the world’s best technology, building secure and reliable infrastructure on Japan’s terms, and helping equip its workforce to accelerate productivity and innovation across its economy.”

As part of expanding AI infrastructure in Japan, Microsoft is teaming up with Sakura Internet and SoftBank to enable domestic providers to offer AI compute services through Azure while maintaining data residency.

Sakura Internet is a Japanese data center and cloud company. In 2024, it was in discussions to purchase some 10,000 GPUs, with its founder noting that it would ultimately need between 50,000 and 100,000 GPUs to meet demand. In 2025, it partnered with KDDI and Hi-Res to establish a system that would enable the "stable and rapid mutual use of GPUs" and "flexibly respond to the rapidly increasing demand."

The partnership with Microsoft will enable Sakura to expand the size of the GPU fleet it can offer customers.

Sanae Takaichi, Prime Minister of Japan, added: “As we enhance predictability for businesses and increase domestic investment under our policy of responsible and proactive fiscal policy, strengthening Japan’s long-term growth potential remains a key priority. We are therefore very pleased that Microsoft has decided to make its largest-ever investment in Japan, totaling 1.6 trillion Japanese yen ($10bn). The ability to leverage GPU infrastructure provided by Sakura Internet and SoftBank when using cloud services is also highly significant for us, particularly from the perspective of safeguarding data sovereignty.”

On the cybersecurity side, Microsoft is partnering with Japan's National Cybersecurity Office to improve the early detection and prevention of cyberattacks, and is collaborating with the National Police Agency (NPA) to help disrupt cybercrime and strengthen national cyber resilience.

As for upskilling locals, Microsoft is offering a $1 million research grant program for researchers in Japan looking to pursue large-scale AI analysis and simulation, and launching a fellowship program and broader AI skilling programs.

Microsoft opened its Japanese data centers in 2014. Japan East is located in the Saitama Prefecture near Tokyo, while Japan West is in the Osaka Prefecture. The cloud giant has also previously signed PPAs with Shizen Energy in the country in 2023 and 2025.