Microsoft Plans A$25 Billion Investment in Digital Infrastructure by 2029

Key Facts

Microsoft said it will invest A$25 billion, equivalent to US$18 billion, in new digital infrastructure in Australia by the end of 2029. The commitment comes as the company expands its local presence in data centers and Azure AI services. The company said the spending will include capital and operating expenses, and that it aims to increase its current footprint by more than 140% over the same period. The announcement places its Australian expansion plans among the digital infrastructure investments the company is making to support demand for computing capacity. Reports about the subsidiary’s earnings had drawn attention, but the information available here does not establish the reasons for that financial shift.

Microsoft said its Australian network comprises 29 data center sites across 3 Azure regions. The expansion follows an earlier commitment in October 2023 to invest A$5 billion in computing capacity and local infrastructure. The company said that investment increased the number of sites from 20 to 29. These figures provide context for the new commitment, which aims to expand the existing footprint by more than 140% by the end of 2029. The new commitment includes capital and operating expenses, according to the company.

CBRE expects Australia’s investable data center sector to grow by about 90% to A$57 billion by 2030. The firm also said data center operators raised A$35 billion in debt and equity financing during 2026 through early September, compared with A$24 billion in 2025. CBRE’s head of data center research in Australia said AI workloads had added a “new layer of demand” to the sector. She linked its future growth to securing power, infrastructure readiness and the availability of creditworthy customers. This highlights that expansion depends not only on spending, but also on the availability of the power and infrastructure needed to operate the centers.

The Australian government is developing national standards for large data centers and AI training following the close of consultations. The Department of the Prime Minister and Cabinet said the responses would help develop Australian AI standards. In the near term, the Australian Bureau of Statistics will release its September 2026 producer price index on October 30 at 11:30 a.m. AEDT. The Reserve Bank of Australia’s Monetary Policy Board will meet on November 2 and 3. The monetary policy decision is scheduled for publication on November 3 at 2:30 p.m. AEDT, while the cash rate target stands at 4.60%, effective since September 30.