Microsoft is to spend $4.8 billion on artificial intelligence (AI) and cloud infrastructure in northern Italy, an investment that would mark the largest made by the company so far in the country.

The initiative will take place over the next two years, enabling the Big Tech company to grow its cloud and AI data centre infrastructure and to deliver digital skills training to more than one million Italians by the end of next year.

The company said the move will establish the Italy-North cloud region as one of Microsoft's largest data centres in Europe, functioning as a data hub for the Mediterranean and North Africa.

Vice president of Microsoft Brad Smith, met with Italy’s Prime minister Giorgia Meloni in Rome on Wednesday, with the government welcoming the company’s investment.

“This landmark investment underscores our long-standing commitment to Italy’s digital transformation,” Smith said. “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.”

Microsoft said the initiative aims to help Italy maximise the opportunities of AI and contribute to the Italian government’s focus on long-term economic growth and demographic challenges.

The move comes after Meloni met with the head of US fund BlackRock Inc Larry Fink in Rome on Monday to discuss potential further investments in data centres and to support energy infrastructure.

BlackRock and Microsoft recently announced a fund worth more than $30 billion to invest in AI-focused data centres, AI supply chains, and energy sourcing, saying the investment would first focus on the US market and its partner countries.

Earlier this month, Microsoft also announced a significant investment of $1.3 billion over the next three years to bolster AI infrastructure and digital skills initiatives in Mexico.

The investment aims to enhance AI infrastructure, promote digital and AI skills, and support inclusive growth through technology programmes in the country.

A key component of this initiative is the Artificial Intelligence National Skills programme, which seeks to democratise access to AI skills and reach five million people.

Earlier this week, Microsoft announced the launch of a new updated version of its AI Copilot assistant, featuring enhancements that provide the chatbot with a more conversational and friendly voice.

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