Microsoft Commits $400M to Expand AI and Cloud Infrastructure in Switzerland

BERN, Switzerland, June 2, 2025 — Building on 36 years of partnership and innovation in Switzerland, Microsoft today announced a $400 million investment to further strengthen both cloud and artificial intelligence capabilities across the country, including the most advanced graphics processing units.

This latest investment deepens Microsoft’s long-standing commitment to Switzerland’s digital future — from the launch of local data centers six years ago to the opening of the Microsoft Innovation Hub in 2022 — and reinforces that vision through continued strategic investments in innovation, digital resilience, and AI adoption.

The commitment focuses on several strategic priorities:

• Expanding its cloud and AI infrastructure: Microsoft will expand its existing datacenters near Zurich and Geneva to meet the growing demand for cloud and AI services. These upgrades will serve more than 50,000 existing customers while bringing advanced AI capabilities to organizations across regulated sectors such as healthcare, finance, and government.
• Empowering Switzerland’s startup and SME ecosystem: Microsoft will partner with the Switzerland Innovation Parks and its sites to expedite industry and AI innovations from research to market applications. This collaboration aims to strengthen the backbone of Switzerland’s economy by supporting SMEs and startups. Microsoft is also continuing its nationwide Swiss AI Tech Accelerator to help startups scale AI solutions.
• Developing AI skills and digital competencies: Microsoft plans to help skill one million Swiss people by 2027, equipping workers, educators, and students with the tools needed to thrive in an AI-driven economy. This initiative includes specialized programs for apprentices, industry associations, and nonprofit organizations.
• Strengthening Switzerland’s role as a global hub for responsible AI governance: Microsoft will expand its collaboration across the International Geneva ecosystem, working with the United Nations and international organizations to advance AI policy conversations, support global AI skilling programs, and address challenges in health, humanitarian action, and human rights.

Microsoft’s strategic investment underscores Switzerland’s critical role in the global AI landscape, ensuring long-term economic resilience and competitiveness while aligning with the country’s strong regulatory framework and tradition of innovation.

Microsoft Vice Chair and President Brad Smith made the announcement alongside Federal Councillor Guy Parmelin and Catrin Hinkel, CEO of Microsoft Switzerland.

“Switzerland has created one of the world’s leading innovation ecosystems, blending world-class research with real-world applications,” said Brad Smith, Microsoft Vice Chair and President.” For more than three decades, we have stood by our Swiss customers’ side. This latest investment helps further strengthen Switzerland’s long-term economic resilience and competitiveness, while ensuring full compliance with Swiss regulations.

“Our commitment and investment in Switzerland spans 36 years, and today’s announcement is a testament to that enduring partnership,” said Catrin Hinkel, CEO of Microsoft Switzerland. “We are steadfast in our mission to empower our customers and partners, as AI’s true potential is unlocked when innovation meets real-world implementation. Together, we’ll continue to build on Switzerland’s tradition of innovation to ensure technology delivers meaningful value to the economy and society.”

Trust and responsibility go hand in hand and they are one of the most important foundations of the Swiss approach, said Federal Councillor Guy Parmelin. Every investment represents trust in the future. This initiative is putting trust into Switzerland, in our people, and in our ability to push the boundaries of AI. It is a sign of confidence in Swiss stability, quality, and innovation.

Cloud Infrastructure Expansion

Microsoft will upgrade its four datacenters near Zurich and Geneva with advanced AI infrastructure, extending investments made since launching local data centers six years ago. This expansion addresses the growing demand for cloud services in Switzerland and ensures continued support of AI services in the region, as a reaction to strong momentum in AI adoption.

According to Microsoft data from Q1 2025, Azure OpenAI usage among customers in Switzerland has increased significantly since mid-2023. Switzerland also ranks second globally in GitHub AI contributor share, with contributors nearly doubling since 2022, reflecting strong engagement from the local developer community. Additionally, the share of Microsoft users in Switzerland engaging with AI tools rose by approximately 3 percentage points to 31% over the past six months, underscoring growing adoption of AI technologies across the Swiss customer base.

The expansion will serve more than 50,000 existing customers while bringing advanced capabilities to new organizations, allowing data to remain within Swiss borders — a critical requirement for regulated sectors like healthcare, finance and government. Notably, UBS, Switzerland’s leading financial institution and one of the world’s largest banks, placed their trust in Microsoft by relying on services that can be scaled to meet the global needs of the business while keeping their data within Swiss borders. UBS’s decision to rely on Microsoft’s scalable and locally compliant services reflects a shared commitment to innovation and data sovereignty in Switzerland.

“UBS’s partnership with Microsoft in Switzerland, and globally, is deep and long-standing. Over the past 10 years, we have worked together to leverage our global expertise and innovative technology approach to strengthen Switzerland’s digital future. The two companies are working side-by-side to support UBS’s ambition to be a technology leader in financial services and support its evolving business needs in areas like AI” said Mike Dargan, Group Chief Operations and Technology Officer, UBS.

In addition, this means that Swiss and local organizations such as Luzerner Kantonsspital (LUKS), one of the largest hospitals in Switzerland, also benefit from Microsoft’s expanded infrastructure.

The initiative builds on Microsoft’s recently announced European Digital Commitments to build a broad AI and cloud ecosystem across Europe, uphold digital resilience, protect data privacy, defend cybersecurity, and strengthen economic competitiveness, including support for open source — principles that fully apply to Switzerland. These commitments, part of a broader multi-billion-dollar investment across Europe, will ensure data sovereignty and support responsible AI development. Switzerland, with its strong regulatory framework and innovation ecosystem, plays a key role in this vision.

Innovation Ecosystem Development, Startups, and National Skills Initiative

Microsoft is expanding its long-standing commitment to Switzerland’s innovation ecosystem through new partnerships and continued support for Startups and SMEs. In one key initiative, Microsoft is partnering with the Switzerland Innovation Parks, the Swiss national network of innovation parks, to accelerate the transfer of AI and industry research into practical applications across industrial processes and public services.

The collaboration strengthens Switzerland’s distinct position in innovation and creates direct pathways for innovations to move quickly from research to market applications across diverse sectors of the Swiss economy – empowering SMEs in particular, the backbone of the Swiss economy and innovation engine.

Since 2019, Microsoft has provided over CHF 30 million in technology resources to more than 1,500 local startups with the Microsoft for Startups program, helping create over 11,000 jobs. Setting the pace in accelerating the development of AI solutions by Swiss Startups, Microsoft’s Swiss AI Tech Accelerator Community will continue with its next cohort in fall 2025, providing participants with resources and expertise to scale their solutions. As a nationwide program, it ensures startups from every region of Switzerland have access to technical sessions, expert mentorship, one-on-one support, and a collaborative community – providing a platform for innovation and growth across the country.

The potential for new jobs depends on training workers with essential AI skills. Microsoft’s 2025 Work Trend Index shows that 80 percent of Swiss leaders believe 2025 is a pivotal year to rethink core business strategies to adopt AI. To manage the rapid transformation brought by AI, 48 percent of leaders name AI-specific skilling as their top workforce strategy.

To ensure that Switzerland has the right skills to stay competitive, Microsoft aims to help skill one million people in Switzerland by 2027 with the goal of developing AI capabilities for education, industry, nonprofit organizations, and citizens. The initiative includes training applied sciences students and graduates through FH Schweiz; enhancing an «AI Guide for SMEs» for business adoption through Innovate Switzerland; skilling engagements with industry associations and local chambers of commerce; and training association leaders.

To ensure that AI opportunities reach all segments of Swiss society, Microsoft is extending learning opportunities for broad AI literacy through AI-Fitness.ch and LerneKI.ch. To reach nonprofits and NGOs, Microsoft collaborates with the CyberPeace Institute and PoliSync on AI skills development in Switzerland and the global south, teaching both AI and cybersecurity. Additionally, Microsoft will support AI skilling programs for apprentices in Switzerland and the US, in cooperation with companies such as Bühler and aligned with the State Secretariat for Education, Research and Innovation.

Strengthening ‘International Geneva’

To support Switzerland’s position as an international center for innovation, Microsoft continues its deep collaboration with the United Nations and other international organizations in International Geneva. By building AI capabilities across and through multilateral organizations in Geneva, Switzerland extends expertise beyond its borders, to the Global South and beyond. Microsoft is engaged with the UN and IOs in advancing policy conversations around responsible AI and data governance, as well as driving AI skilling programs for educators, government workers, policymakers, IT professionals, and organizational leaders. Microsoft’s work with the UN also includes leveraging AI to address global challenges that include health, disaster response, humanitarian assistance, and biodiversity conservation. Some collaborations include:

• Working with UNHCR to enhance refugee support through digital services that streamline access to critical resources, and with IOM to harness AI-powered tools to match migrants with regular migration pathways.
• In collaboration with OHCHR, a strategic roadmap is being developed to apply AI in support of global human rights advocacy as well as amplifying the need to consider Human Rights issues while deploying AI in and by businesses.
• Microsoft’s partnership with IFRC is enabling the organization to better serve vulnerable communities through secure, AI-enhanced digital platforms.
• In collaboration with the CyberPeace Institute and their CyberPeace Builders program, Microsoft is offering cybersecurity support to NGOs who, in turn, support people and the planet.
• Microsoft works closely with the ITU to support global conversations around AI, advancing skills as a part of the AI skills coalition, the AI for Good Summit, as well as delivering commitments to close the digital divide as a member of the part of the Partner to Connect project.
• Microsoft also partners with ITU and Swiss academic institutions such as the Geneva Graduate Institute focusing on bringing the Global South voices to the fore on equitable AI governance.

About Microsoft

Microsoft (Nasdaq “MSFT”) creates platforms and tools powered by AI to deliver innovative solutions that meet the evolving needs of our customers. The technology company is committed to making AI available broadly and doing so responsibly, with a mission to empower every person and every organization on the planet to achieve more.

Source: Microsoft