Microsoft to invest US$5.5 billion in Singapore to deepen AI push

[SINGAPORE] Microsoft on Wednesday (Apr 1) announced it will invest US$5.5 billion in Singapore over five years, as it ramps up its artificial intelligence (AI) operations in the Republic.

The investment, which runs till 2029, will go towards expanding cloud and AI infrastructure, as well as talent development, alongside a nationwide push to widen access to AI tools and training.

During his keynote address at the ATxInspire event held at Capitol Theatre, Microsoft vice-chair and president Brad Smith noted that this is the tech giant’s largest single commitment worldwide, and is part of a broader US$50 billion push for AI investments by the end of 2029.

As part of its local rollout, all 200,000 tertiary students enrolled in university and vocational training institutes in Singapore will receive a 12-month premium Microsoft 365 with Copilot membership.

Through this programme, tertiary students will be given access to the full suite of Microsoft products – including PowerPoint, Excel, OneNote, Word and Outlook – as well as access to Microsoft’s large language model Copilot for free.

Microsoft said that this access to useful, secure AI built into workflows will give students an edge as they further their education, and improve their employability in the evolving job market.

Beyond tools such as Copilot, Smith noted, the world “is going to need a new AI skilling ecosystem”.

To bridge the broader skilling gap, Microsoft announced that it has expanded its AI training programme – Elevate for Educators and Elevate for Changemakers – to educators and non-profit leaders in Singapore respectively.

Launched last year, the Elevate programme seeks to target both individuals and organisations to lead AI transformation and adoption.

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The initiatives are aligned with Singapore’s National AI Strategy 2.0, which aims to build capabilities and support the responsible adoption of AI across the economy.

Singapore a key AI node

While global AI adoption accelerates, a disparity between the developed and emerging markets remains, often described as a divide between the global north and the global south.

Speaking at a fireside chat with chairman of the Infocomm Media and Development Authority Russell Tham, Smith noted that the adoption rate of AI in the global north has reached 23 per cent, close to double of that in the global south, which stood at 13 per cent.

Developed markets, such as nations in North America and Europe, are able to attain higher AI adoption rates because of better infrastructure and AI skill sets, he said.

He emphasised that the gap in AI adoption, if not addressed readily, is a “cause for concern”.

The AI adoption rate in the Republic stood at 60.9 per cent in 2025, making it the second-highest adoption rate in the world, behind the United Arab Emirates which had a 64 per cent adoption rate.

This positions Singapore as a key node in the AI landscape, with Microsoft’s Smith noting that its ongoing investment here reflects “long-term confidence in Singapore as a global digital leader”.