Microsoft (MSFT) is investing $700 million in Poland to boost cloud and AI infrastructure including for the defense of the country against cyberattacks.
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Accelerate Adoption of New Technology
The U.S. tech giant said it would spend the amount by next June expanding its hyperscale cloud and AI infrastructure in the country as well as working with the Polish army to create a framework to strengthen national cybersecurity. Microsoft said that the deal would help accelerate the adoption of new tech in Poland and boost its economic competitiveness. The investment is for a second phase of the already completed $1 billion Polish data centre project announced in 2020. The data centre was opened in 2023, providing cloud services to businesses and government institutions.
Aiding the Defense of Poland
But it is the commitment to strengthening Poland’s national cybersecurity which is arguably more eyebrow-raising particularly at a time when European states are considering amping up defense spending given concerns over U.S. support under President Trump.
According to the latest Microsoft Digital Defense report Poland ranks 3rd in Europe and 9th in the world in terms of exposure to attacks from cybercriminal organizations sponsored by foreign nations. To combat this Microsoft will work with Polish National Defense to develop AI competencies and the application of so-called Emerging Disruptive Technologies such as cloud computing models, AI and quantum. “We appreciate the critical role that Poland plays in the European Union, and we are committed to helping to protect its cybersecurity and cyber resilience,” said Brad Smith, Vice Chair and President of Microsoft.
The commitment shows the potential for MSFT and other US tech groups and defense stocks to help Europe meet its ambitions to increase defense spending and capabilities. As outlined in a note today from Saxo’s chief investment strategist Charu Chanana NATO member states raising their defense spending targets to as much as 5% of GDP could “unlock billions in new defense spending across Europe, benefitting local contractors and U.S. firms with European operations.” He added: “This spending surge could fuel demand for air defense systems, tanks, and cybersecurity solutions.”
Is MSFT a Good Stock to Buy?
On TipRanks, MSFT has a Strong Buy consensus based on 29 Buy and 3 Hold ratings. Its highest price target is $600. MSFT stock’s consensus price target is $510.38 implying an 24.96% upside.
