Following the announcement of its plan to invest €3.2 billion in Germany, expanding its data center footprint and improving digital skills, Microsoft has expanded its European commitment with an agreement with the Spanish Government to integrate AI and cloud technology into both public administration and enterprises. Microsoft is expected to quadruple its investments in Spain, reaching the sum of US$2.1 billion (€1.9 billion) by 2025.

Brad Smith, Vice-Chair and President of Microsoft, told newspaper EL PAÍS: “Between Q3 and Q4 last year, we saw the use of generative AI by organisations across Spain increase by more than five times in one quarter. So, we are literally seeing AI adoption explode across the Spanish economy. Our investment of $2.1 billion in just two years is trying to keep pace with the country’s needs.”

The project constitutes Microsoft’s most substantial investment in Spain in the 37 years since it established its presence in the country.

Microsoft’s partnership with Spain is part of the country’s National Artificial Intelligence Strategy and the National Cybersecurity Strategy.

The commitment involves the deployment of Microsoft’s AI solutions and its cloud technology in Public Administration, national cybersecurity, and private enterprises.

As part of this agreement, Microsoft will soon open a Cloud Region of Data Centers located in the Community of Madrid and will also construct a Data Center Campus in Aragon. These facilities will cater to European companies and public entities.

These data centers will provide access to Microsoft’s AI solutions to the public administration and businesses, ensuring data sovereignty, which will not leave Europe.

In a post on X, previously known as Twitter, Spain’s Prime Minister Pedro Sánchez, said: “The investment by Microsoft in Spain will quadruple to €1.95 billion. I want to thank its president, Brad Smith for his confidence in the Spanish economy and in our roadmap for an inclusive and secure digital transformation.

“We also discussed opportunities for cooperation to strengthen cybersecurity and the promotion of artificial intelligence in public administration. Public-private collaboration is essential to successfully face the challenges of digital transformation.”

Within the last three months, Microsoft has committed €8.1 billion to the development of cloud and AI-related infrastructure on European soil signaling its commitment to championing the much awaited wave of AI deployments expected to last well into the next decade.