Microsoft has announced a $400 million investment to upgrade and expand its cloud computing and artificial intelligence (AI) infrastructure in Switzerland, reinforcing the country’s growing role as a digital innovation hub.

The tech giant said the funds will enhance its four existing data centres near Geneva and Zurich to meet surging demand for AI-powered services and cloud storage across sectors like healthcare, finance, and public administration. The upgrades will also ensure that sensitive customer data remains stored within Swiss borders, addressing regulatory and security requirements.

According to Reuters, the announcement was made during a high-level meeting in Bern between Swiss Economy Minister Guy Parmelin and Microsoft Vice Chair Brad Smith. While job creation figures were not disclosed, Microsoft currently employs about 1,000 people in Switzerland.

In a statement, Smith praised Switzerland’s “leading innovation ecosystem,” citing its strong research base and practical applications in AI.

As part of the initiative, Microsoft also plans to deepen partnerships with local small and medium-sized enterprises (SMEs) and ramp up digital skills training to support the country’s AI workforce development.