Microsoft has announced a $400 million investment to bolster its cloud computing and artificial intelligence capabilities in Switzerland, marking a significant expansion of its 36-year presence in the country.
The announcement was made in Bern by Microsoft Vice Chair and President Brad Smith, who was joined by Swiss Federal Councilor Guy Parmelin and Catrin Hinkel, CEO of Microsoft Switzerland.
The tech giant’s latest commitment builds upon earlier initiatives, including the launch of local data centers in 2019 and the opening of its Innovation Hub in 2022. This new investment aims to reinforce Switzerland’s role as a leader in AI adoption, digital resilience, and innovation.
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Microsoft will expand its existing data center infrastructure in the Zurich and Geneva regions to meet the country’s growing demand for cloud and AI services. These upgrades will serve over 50,000 customers, including key players in highly regulated sectors such as healthcare, finance, and government. The investment will also introduce the most advanced graphics processing units (GPUs) to support intensive AI workloads.
Microsoft said this is part of its broader strategy to enable data to stay within Swiss borders, a critical requirement for institutions that handle sensitive information. Catrin Hinkel, CEO of Microsoft Switzerland, emphasized the company’s enduring partnership with the country.
“Our commitment and investment in Switzerland spans 36 years, and today’s announcement is a testament to that enduring partnership,” she said. “We are steadfast in our mission to empower our customers and partners, as AI’s true potential is unlocked when innovation meets real-world implementation.”
Brad Smith echoed the sentiment. “Switzerland has created one of the world’s leading innovation ecosystems, blending world-class research with real-world applications,” he said. “This latest investment helps further strengthen Switzerland’s long-term economic resilience and competitiveness, while ensuring full compliance with Swiss regulations.”
Federal Councilor Guy Parmelin described Microsoft’s decision as a sign of confidence in the country’s political stability and technological prowess.
“Every investment represents trust in the future. This initiative is putting trust into Switzerland, in our people, and in our ability to push the boundaries of AI,” Parmelin said.
According to Microsoft’s internal data, Swiss engagement with AI technologies is rising sharply. Azure OpenAI usage in the country has increased significantly since mid-2023. GitHub data shows that Switzerland ranks second globally in AI-related code contributions, with the number of contributors nearly doubling since 2022. Over the past six months, the share of Microsoft users in Switzerland using AI tools rose by about three percentage points to 31 percent.
Among the organizations benefiting from this expansion is UBS, one of the world’s largest banks. UBS relies on Microsoft services that comply with Swiss data sovereignty requirements and scale to meet global business needs.
Mike Dargan, UBS’s Group Chief Operations and Technology Officer, noted the two companies’ decade-long collaboration.
“UBS’s partnership with Microsoft in Switzerland, and globally, is deep and long-standing. We are working together to support UBS’s ambition to be a technology leader in financial services and support its evolving business needs in areas like AI,” he said.
Healthcare institutions such as Luzerner Kantonsspital (LUKS), one of Switzerland’s largest hospitals, will also benefit from the upgraded infrastructure.
The investment is part of Microsoft’s broader European Digital Commitments, a continent-wide initiative focused on building a resilient cloud and AI ecosystem. These commitments include advancing open-source support, defending cybersecurity, protecting data privacy, and ensuring digital sovereignty — all principles that align closely with Switzerland’s regulatory framework and innovation heritage.
Microsoft is also targeting the country’s innovation ecosystem through partnerships and programs aimed at nurturing startups and small businesses. A new collaboration with the Switzerland Innovation Parks will help speed up the commercialization of AI research across sectors ranging from manufacturing to public administration. The aim is to bridge the gap between research and market-ready solutions, with a particular focus on empowering SMEs, which Microsoft describes as the backbone of the Swiss economy.
The company’s Swiss AI Tech Accelerator will continue with a new cohort in the fall of 2025, offering startups nationwide access to technical training, mentorship, and community support. Since 2019, Microsoft has provided more than CHF 30 million in technology resources to over 1,500 local startups, contributing to the creation of more than 11,000 jobs.
To sustain innovation, Microsoft is placing a strong emphasis on skills development. It plans to train one million people in Switzerland by 2027, targeting workers, students, educators, and nonprofit organizations. Training programs will be run in collaboration with partners such as FH Schweiz, Innovate Switzerland, local chambers of commerce, and industry associations. A special “AI Guide for SMEs” is being developed to support AI adoption in small businesses, while educational tools like AI-Fitness.ch and LerneKI.ch aim to promote broad-based AI literacy.
Microsoft is also extending training to apprentices and young professionals, including a transatlantic program in collaboration with Swiss firm Bühler and the State Secretariat for Education, Research, and Innovation.
The company is doubling down on its presence in “International Geneva,” where it works alongside the United Nations and other international bodies to promote responsible AI development and governance. Microsoft is supporting UN agencies such as UNHCR, IOM, and OHCHR in deploying AI tools to streamline refugee support, manage migration, and enhance human rights advocacy.
The company’s work with the International Federation of Red Cross and Red Crescent Societies (IFRC) is helping modernize digital platforms for humanitarian response. Meanwhile, its partnership with the CyberPeace Institute is providing cybersecurity support to NGOs. Microsoft also collaborates with the International Telecommunication Union (ITU) on global AI initiatives, including the AI for Good Summit and the Partner to Connect project.
Environmental sustainability remains another cornerstone of Microsoft’s Swiss operations. The company has pledged to become carbon-negative, water-positive, and zero waste by 2030. It currently powers all its operations in Switzerland with renewable energy and continues to procure green power across Europe to meet its 100 percent direct renewable energy target. In 2024, Microsoft signed a six-year agreement with Swiss firm Neustark for the removal and storage of 27,600 tons of biogenic carbon, with deliveries from projects in Switzerland and Germany.
The Swiss expansion follows similar moves by Microsoft in other parts of Europe, as the company ramps up multi-billion-dollar investments to build secure, scalable, and sustainable AI infrastructure across the continent. With Switzerland now more deeply embedded in that strategy, Microsoft is positioning the country as a key node in the global AI ecosystem.