American software giant Microsoft plans to invest 3.2 billion euros (about 3.44 billion US dollars) in Germany over the next two years. Most of it will be invested in artificial intelligence to revive the large European economy, which is facing its worst recession in 20 years. .
The company aims to double the capacity of the country's artificial intelligence infrastructure and data centers and expand its training programs.
This is Microsoft's largest investment in the European Union in its 40-year history.
“We do this because we have complete confidence in Germany,” said company president Brad Smith, adding that the export-oriented economy has always been at the forefront of technological change.
Germany ranks second in Europe when it comes to creating AI-based applications, and German companies are increasingly relying on AI, even though they are ranked 11th in Europe in terms of AI skills.
Microsoft's investment includes a program to train up to 1.2 million people in new AI skills.
Microsoft's spending will help build infrastructure to help the German economy continue to benefit from artificial intelligence and build a skills base to fill in-demand jobs.
Chancellor Schulz said the move confirms public confidence in Germany, which has already made significant investments in batteries, chips and medicines.
Schulz, who is committed to improving Germany's economic attractiveness, acknowledged that the export-oriented country was feeling the effects of slowing global economic growth.
The DIHK Chamber of Commerce and Industry had previously warned that the German economy may contract by 0.5% this year, marking the second year of recession and the worst recession in two decades.
She called on companies to form a three-way coalition including Schulz's Social Democrats, the Green Party, and the business-friendly Free Democrats to reform taxes and reduce bureaucracy.
Microsoft has stated that it wants balanced, practical, and thoughtful regulations regarding issues of bureaucracy and data protection.
Taiwanese chipmaker TSMC and Intel agreed to cooperate with Germany last year, with strong support from the country.
Marian Janick, CEO of Microsoft Germany, declined to provide details about the location of the investment, but said the company was focusing on the West Rhineland region and the banking center of Frankfurt.
In these areas, Microsoft is approaching major customers such as pharmaceutical company Bayer and energy company RWE, which will help keep data transfer times between data centers and applications as short as possible.