Microsoft announces plans to invest $3.2 billion in Swedish AI

The move cements the tech-giant’s footprint in the nation by adding 20,000 of GPUs, or graphics processing units, at its three data centers. The company is also committing to training 250,000 in “essential AI skills,” according to a statement on Monday.

“This large investment reflects our belief in how much Sweden can benefit from AI,” Microsoft Vice Chair and President Brad Smith said in an interview. He praised the nation as “one of the continent’s most innovative countries,” while adding that the nation will only remain a leader if it uses AI.

The Nordic region has become a prime target for big energy users thanks to the abundance of clean energy, with hydropower dominating the power mix. Facebook-owner Meta Platforms Inc and Google-owner Alphabet Inc both have their own large facilities across the Nordics. 

Data centers compete with other industries looking to benefit from some of the cheapest electricity in the world. Several green mega-projects are expected to more than double power demand in the coming decade. 

When asked about the risk of a looming power crunch, Microsoft’s Smith said the company has coupled its data center investments with large bets on renewable energy. It has procured nearly 1 gigawatt of power as well as signed a contract with state-owned power company Vattenfall AB. 

“I don’t think we could have made an investment such as the one we have done in Sweden without a partner like Vattenfall,” Smith said.