Microsoft (NASDAQ:MSFT) will invest $3.2 billion to expand its cloud and artificial intelligence infrastructure in Sweden over the next two years. This will be the company’s largest investment in Sweden. The tech giant will deploy 20,000 advanced graphic processing units (GPUs) at its Swedish data centers to boost AI adoption in the Nordic region. Additionally, over three years, it plans to train 250,000 Swedes in AI skills and has invested in nearly 1,000 MW of renewable energy in Sweden.
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Microsoft Is Betting Big on AI
Microsoft is betting big on AI and is increasingly investing in expanding its cloud and AI infrastructure around the world, including Southeast Asia and Europe. Earlier this year, the company announced an investment of $2.1 billion to expand its cloud infrastructure over two years in Spain and a $3.4 billion AI infrastructure-focused investment in Germany.
Furthermore, MSFT has announced plans for a new regional data center in Thailand and will invest $1.7 billion in Indonesia for cloud and AI expansion. Similarly, the company is investing $2.9 billion in Japan and $1.5 billion in the UAE’s G42.
Indeed, according to a Reuters report, Goldman Sachs views the AI boom as a near-$1 trillion opportunity, driven by tech companies investing in data centers for training large language models. As a result, MSFT could benefit significantly from this opportunity.
Is Microsoft a Buy or Sell Stock?
Analysts remain bullish about MSFT stock, with a Strong Buy consensus rating based on 32 Buys and one Hold. Over the past year, MSFT has increased by more than 20%, and the average MSFT price target of $491.90 implies an upside potential of 18.5% from current levels.
