In concise
- Microsoft will employ Nvidia, AMD, and in-house CPUs; Smith;
- AI skills training for 250,000 Swedes
- investment in renewable energy, with 1,000 MW acquired in Sweden
- expansion slated for two years
Microsoft (MSFT.O) announced on Monday that it will invest 33.7 billion Swedish crowns ($3.2 billion) over the course of two years to enhance its cloud and artificial intelligence infrastructure in Sweden.
The increasing demand for cloud services due to generative AI has prompted firms like Microsoft and Amazon Web Services (AMZN.O) to invest billions of dollars in building data centers in Europe.
Microsoft made investments in data centers in Germany and Spain in February, and in the UK in November.
“There will likely be additional announcements in the fall,” Microsoft President Brad Smith stated in an interview.
Microsoft intends to install 20,000 of the newest graphics processing units at its Swedish data center locations in Sandviken, Gavle, and Staffanstorp. These GPUs accelerate computer computations.
According to Smith, the company will use Nvidia’s (NVDA.O) faster processors, open new tabs, and may eventually use some of its chips in addition to AMD’s (AMD.O) semiconductors.
The rush to create generative AI software has increased demand for sophisticated CPUs that can handle these sophisticated applications.
Microsoft declared its commitment to accelerating the use of AI in the Nordic region, which encompasses Norway, Denmark, Finland, Iceland, and Sweden in addition to Sweden.
Over the course of three years, the company intends to equip 250,000 Swedes with AI capabilities for use in organizations, schools, colleges, the public sector, and society at large.
In addition, it has acquired around 1,000 MW of renewable energy in Sweden and is investing in renewable energy.
With IT companies investing in data centers to train their power-hungry huge language models, Goldman Sachs estimates that the AI boom will provide a nearly $1 trillion potential for the industry.
“AI is a tech transformation that should be seen as a multiplier or catalyst … It is part of the strategy going forward when, after successfully fighting inflation, we enter a new phase, an investment phase,” stated Ulf Kristersson, the prime minister of Sweden.
Note: $1 is equal to 10.5137 Swedish crowns.
