Microsoft has announced a €4.3bn ($4.75bn) investment to expand its hyperscale cloud and AI data centre infrastructure in Italy over the next two years.

This initiative is claimed to be the company’s largest in Italy to date.

As part of the funding, the company will also provide digital skills training to over one million Italians by the end of next year.

Microsoft vice-chair and president Brad Smith said: “This landmark investment underscores our long-standing commitment to Italy’s digital transformation.

“By expanding access to our AI technology and expertise, we are equipping the Italian government, businesses, and the broader workforce with the tools to build an AI-driven economy that creates jobs and drives prosperity.”

The investment is designed to support Italy’s efforts to harness the potential of AI and contribute to the government’s focus on long-term economic growth and addressing demographic challenges.

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The data centre expansion of the company in northern Italy is set to meet the rising demand for AI computing and cloud services, as organisations seek to enhance productivity and discover new AI-driven breakthroughs, the tech giant noted.

By incorporating AI into key sectors, including healthcare, manufacturing, finance, and public administration, Italy could enhance production processes, patient outcomes, financial services, and the efficiency of public services.

Additionally, leveraging AI in local small and medium-sized enterprises (SMEs) can unlock new levels of innovation and entrepreneurship.

The Italy North data centre region is expected to become one of Microsoft’s largest in Europe and could play a vital role in meeting European data sovereignty requirements.

In addition to infrastructure development, Microsoft and its partners will introduce new training programmes to skill more than one million people in Italy by next year.

These programmes will focus on AI fluency, technical skills and business transformation, as well as the promotion of safe and responsible AI development.

Collaborating with a broad network of Microsoft-certified training service partners, industry partners, universities, non-profit organisations, government institutions, and associations, Microsoft aims to launch skilling initiatives for professionals and students, including those in disadvantaged communities.

The latest development comes after the company announced a 14.7bn reais ($2.7bn) investment to bolster Brazil’s cloud and AI infrastructure over the next three years.