Microsoft commits €4B to develop AI data centers in France
What's the story
Microsoft and Amazon, two leading US tech companies, have committed to investing billions in France's technology infrastructure.
The announcement was made on the eve of the seventh Choose France Summit, an event designed to attract foreign investors.
Microsoft has pledged €4 billion toward developing data centers in France, marking its largest-ever investment in the country since its establishment 41 years ago.
Strategic move
Microsoft's largest investment in France targets AI and cloud
Microsoft's president, Brad Smith, explained that the €4 billion investment is aimed at strengthening the company's artificial intelligence and cloud computing infrastructure in France.
Smith attributed this decision to France's "longstanding commitment to carbon-free energy markets" and its role as a "critical leader" in Europe.
The investment will enable the creation of a new data center in eastern France and expansion of existing sites in Paris and Marseille.
Job creation
Amazon's billion-euro investment to boost French infrastructure
E-commerce giant Amazon has also pledged over €1.2 billion toward the development of France's tech infrastructure, a move expected to create more than 3,000 jobs according to President Emmanuel Macron's office.
The funds will be used primarily for enhancing Amazon Web Services's (AWS) cloud infrastructure and generative artificial intelligence, as well as improving the logistical infrastructure of its parcel delivery service.
This investment follows Amazon's previous announcement of creating 2,000 new jobs in France in 2024.
Growth strategy
Amazon's workforce expansion and AWS's global success
Amazon plans to increase its staff workforce in France to 24,000 by the end of 2024, primarily within its logistics centers.
This move aligns with the company's strategy to expand its operations in the country.
Amazon Web Services (AWS), a key subsidiary of Amazon, generated $25 billion worldwide in Q1 alone by capitalising on businesses' growing demand for remote computer and artificial intelligence services.
Diverse investments
Pharma giants and European consortium also invest in France
As the Choose France Summit was being prepared, several pharmaceutical companies including US-based Pfizer and Britain's AstraZeneca announced commitments to invest over a billion euros in France's health sector.
The largest industrial project revealed so far is a potential fertiliser factory by European consortium FertigHy, which could significantly reduce carbon dioxide emissions.
Industry Minister Roland Lescure disclosed that FertigHy is considering investing 1.3 billion euros into a factory in the Somme region in northern France.