Why Microsoft is dropping billions on Australian data centres
Insatiable demand for data driven in part by the boom in AI has prompted the world's second most valuable company to spend vast sums doubling capacity in Australia.
The insatiable demand for cloud services in general and artificial intelligence in particular means Big Tech companies need as many facilities for data crunching as possible. That's led to Microsoft announcing a mighty $5 billion investment down under, which includes 9 new data centres spread across New South Wales, Victoria and the ACT.
All that dosh will more than double Australia's cloud computing capacity, and it will go towards more than just data centres. Microsoft is also investing in training and cybersecurity: It will open the Microsoft Data Centre Academy with TafeNSW to train locals on how to design and manage data centres, and will work with the Australian Signals Directorate to help identify and defend against cyber threats.
The expanded cloud computing will reduce latency across Microsoft's cloud and AI services. It also allows companies to more easily store their data on Australian shores, said Microsoft's ANZ Managing Director Steven Worrall in a Tuesday interview.
"That's why the partnership with the government is so vital, because increasingly organisations are saying, ‘I want to use those services, but I don't want my data going offshore,' he said. "And in a world of cyber threats and cyber risks, which is the third part of this announcement, it's very important, because increasingly, organisations, governments and private sector are putting very sensitive information into the cloud systems."
