Microsoft to invest $400 million to grow Swiss data center footprint

Microsoft is expanding its data center capacity in Switzerland.

The $400 million investment will “further strengthen Switzerland’s cloud and artificial intelligence capabilities, including the provision of cutting-edge graphics processing units (GPUs),” the company said this week. “This latest investment underscores Microsoft’s long-term commitment to Switzerland’s digital future – from the launch of local data centers six years ago to the opening of the Microsoft Innovation Hub in 2022 – and reinforces this vision through continued strategic investments in innovation, digital resilience, and the widespread adoption of AI.”

Microsoft said it will expand its four existing data centers near Zürich and Geneva to meet growing demand for cloud and AI services – though details weren’t provided.

Microsoft launched two Swiss Azure regions in 2019; Switzerland North in Zürich and Switzerland West in Geneva. The company added availability zones to the North region in 2022. The West site has been reclassified as a ‘reserved access region.’

“Switzerland has created one of the world’s leading innovation ecosystems, combining world-class research with practical applications,” said Brad Smith, Vice Chair and President of Microsoft. “For more than three decades, we have stood by our Swiss customers. This latest investment will help further strengthen Switzerland’s long-term economic resilience and competitiveness while ensuring full compliance with all regulatory requirements.”

Despite reports of a global data center pullback totaling some 2GW, Microsoft recently pledged to increase its European data center capacity by 40 percent over the next two years.

The company said the Swiss expansion will serve more than 50,000 existing customers while ensuring all data remains within Switzerland’s borders. Named Swiss customers of the cloud company include UBS and Lucerne Cantonal Hospital.

“Our commitment and investment in Switzerland stretches back 36 years – today’s announcement is a clear commitment to this long-standing partnership,” said Catrin Hinkel, CEO of Microsoft Switzerland. “We remain committed to our mission to support our customers and partners. The true potential of AI unfolds when innovation meets practical implementation. Together, we will continue to drive Switzerland’s innovative power to ensure that technology creates significant added value for business and society.”

Microsoft said its entire electricity consumption in Switzerland to-date has been covered by purchasing renewable energy. Last year, the company signed a six-year agreement with Swiss company Neustark for 27,600 tons of biogenic carbon removal and storage via projects in Switzerland and Germany.