Microsoft will invest $5.5 billion in cloud and artificial intelligence (AI) infrastructure and operations in Singapore between 2025 and 2029, as part of efforts to support the country’s growing role in the global digital economy, the tech giant said in a press release on Wednesday.

The announcement was made by Brad Smith, Vice Chair and President of Microsoft, at the Asia Tech x Inspire event. The announcements align with Singapore’s broader national strategy to expand AI adoption. According to data from LinkedIn, demand for AI-related skills in Singapore has increased by more than 70 percent year-on-year, reflecting growing integration of AI across industries.

The investment will focus on expanding cloud and AI infrastructure, as well as strengthening cybersecurity, resilience and governance frameworks. The company also outlined initiatives aimed at increasing AI skills and adoption across education, workforce development and the nonprofit sector.

As part of these efforts, all tertiary students in Singapore will receive 12 months of free access to Microsoft 365 Premium with Copilot, which includes AI-powered tools integrated into applications such as Outlook, Word, Excel and PowerPoint. More than 200,000 students across universities and vocational institutions are expected to benefit.

Dr. Janil Puthucheary, Senior Minister of State at the Ministry of Education and the Ministry of Sustainability and the Environment in Singapore, said: “Baseline AI skills are increasingly becoming as fundamental as digital literacy.”

Microsoft stated that its initiatives aim to support broader access to AI tools and skills, with a focus on workforce readiness and inclusive adoption across sectors.

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