Microsoft has announced a major $400 million investment aimed at boosting Switzerland’s cloud infrastructure and artificial intelligence capabilities, further cementing its commitment to the country after 36 years of operations.

The funding will expand Microsoft’s existing data centre presence near Zurich and Geneva, introduce cutting-edge AI capabilities, and accelerate the development of local skills and startups. With demand for AI services surging, Microsoft’s move comes as part of a broader strategy to ensure Switzerland remains a digital frontrunner.

The announcement was made by Microsoft Vice Chair and President Brad Smith, alongside Federal Councilor Guy Parmelin and Microsoft Switzerland CEO Catrin Hinkel.

“Switzerland has created one of the world’s leading innovation ecosystems, blending world-class research with real-world applications,” said Brad Smith. “For more than three decades, we have stood by our Swiss customers’ side. This latest investment helps further strengthen Switzerland’s long-term economic resilience and competitiveness, while ensuring full compliance with Swiss regulations.”

The initiative focuses on four key areas: strengthening cloud and AI infrastructure, supporting startups and SMEs, equipping one million people with digital and AI skills by 2027, and advancing international collaboration on responsible AI development.

Data Centre Expansion to Meet AI Demand

Microsoft’s Zurich and Geneva data centres will be upgraded with advanced graphics processing units (GPUs) to support modern AI workloads. These facilities already serve over 50,000 customers, and the expansion is expected to increase capacity to meet the growing needs of sectors such as finance, healthcare, and government.

The upgrades are driven by rising adoption of AI technologies. According to Microsoft’s own data, use of Azure OpenAI in Switzerland has grown significantly since mid-2023. Switzerland now ranks second globally for AI contributors on GitHub, and the share of Microsoft users in the country engaging with AI tools has climbed by 3 percentage points in the past six months to 31%.

Crucially, these developments also support data localisation for regulated industries. UBS, one of the world’s largest banks, continues to partner with Microsoft to maintain its services within Swiss borders.

“UBS’s partnership with Microsoft in Switzerland, and globally, is deep and long-standing. Over the past 10 years, we have worked together to leverage our global expertise and innovative technology approach to strengthen Switzerland’s digital future. The two companies are working side-by-side to support UBS’s ambition to be a technology leader in financial services and support its evolving business needs in areas like AI,” said Mike Dargan, Group Chief Operations and Technology Officer at UBS.

Other organisations like Luzerner Kantonsspital (LUKS), one of Switzerland’s largest hospitals, are also expected to benefit from the infrastructure enhancements.

Supporting Startups, SMEs and Scaling Innovation

Microsoft is reinforcing its support for Switzerland’s startup ecosystem through collaborations with the Switzerland Innovation Parks network. This partnership will help translate AI and industry research into practical tools for businesses and public services.

SMEs are a particular focus, as they represent the backbone of the Swiss economy. Through the Microsoft for Startups programme, more than CHF 30 million in resources has been provided to over 1,500 local startups since 2019, contributing to the creation of more than 11,000 jobs.

Microsoft’s Swiss AI Tech Accelerator, a national programme to help AI-focused startups grow, will launch its next cohort in autumn 2025. The accelerator offers access to technical training, expert mentorship, and a collaborative support network to help scale AI-driven solutions.

Commenting on the long-term outlook, Catrin Hinkel said, “Our commitment and investment in Switzerland spans 36 years, and today’s announcement is a testament to that enduring partnership.” She added, “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. Together, we’ll continue to build on Switzerland’s tradition of innovation to ensure technology delivers meaningful value to the economy and society.”

One Million Swiss to Gain AI Skills by 2027

A significant part of Microsoft’s pledge involves training one million people in Switzerland with digital and AI skills over the next two years. This will include students, educators, industry workers, and nonprofit organisations.

The move responds to insights from Microsoft’s 2025 Work Trend Index, which found that 80 percent of Swiss business leaders see this year as critical to adapting strategies for AI integration. Almost half (48 percent) cited AI-specific training as their top workforce priority.

Microsoft’s initiative spans partnerships with FH Switzerland to train applied sciences students, support for SMEs through Innovate Switzerland’s “AI Guide for SMEs”, and collaboration with local chambers of commerce and associations. Programmes like AI-Fitness.ch and LerneKI.ch will promote AI literacy to the wider public.

Nonprofit organisations are also being targeted. Microsoft is working with the CyberPeace Institute and PoliSync to deliver AI and cybersecurity training to NGOs in Switzerland and the Global South. The company also plans to support apprenticeships in collaboration with companies such as Bühler and in alignment with the State Secretariat for Education, Research and Innovation.

Switzerland’s Role in Global AI Governance

Microsoft also aims to extend Switzerland’s influence in international AI governance through deeper engagement with the “International Geneva” ecosystem. The company is working closely with the United Nations and other international bodies on initiatives to harness AI for humanitarian and environmental causes.

Key partnerships include:

• Enhancing refugee services with UNHCR and developing AI tools with IOM to match migrants with regular migration options.
• Collaborating with OHCHR to create a roadmap for AI in human rights advocacy.
• Supporting IFRC’s digital transformation for humanitarian efforts.
• Backing cybersecurity for NGOs through the CyberPeace Institute.
• Engaging with the ITU and Swiss academic institutions like the Geneva Graduate Institute to promote responsible AI and include voices from the Global South.

These efforts reflect Microsoft’s belief that Switzerland’s regulatory stability and global connections make it uniquely positioned to influence AI policy and ethical deployment on a global scale.

This new round of investment also supports Microsoft’s broader European Digital Commitments, focused on promoting data sovereignty, responsible AI development, and open-source technologies. With Switzerland playing a central role in this vision, the country looks set to remain a key player in shaping the digital future.