Microsoft Corp. MSFT has pledged to invest an additional $700 million in Poland. The investment aims to strengthen the country’s cybersecurity infrastructure in partnership with the Polish armed forces.
What Happened: The Polish Prime Minister Donald Tusk and Microsoft Microsoft President Smith announced at a joint press conference about the investment, reported Reuters today. The investment is designated for the second phase of the $1 billion Polish data center project, which was initially announced in 2020 and launched in 2023. This data center delivers cloud services to both businesses and government institutions.
Microsoft cited a 2023 PwC CEO survey that revealed that 54% of CEOs in Poland believed that their companies would not be profitable within a decade if they did not undergo digital transformation.
Their key priorities in 2023 included investing in automation, upskilling, cloud computing, AI, and other advanced digital technologies. Hence, Microsoft offered to support these digital transformations with access to technologies, such as Microsoft Azure, Microsoft 365, Dynamics 365, and Power Platform services, available in the Polish cloud region.
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Why It Matters: Microsoft’s latest investment in Poland aligns with its broader strategy of expanding its global data center footprint. The company is projected to spend $80 billion on AI data centers in FY 2025.
The revenue for Microsoft’s Intelligent Cloud segment, containing the Azure cloud surged 19% in the second quarter. However, Chief Financial Officer Amy Hood stated that overall revenue growth in the primary cloud division is being constrained by the company’s insufficient data center capacity to meet customer demand. She expects these capacity limitations to be resolved by the end of the fiscal year.
This move underscores Microsoft’s commitment to supporting digital transformations worldwide, especially in regions like Poland where businesses are increasingly recognizing the importance of digital adaptation for future profitability.
Microsoft stock has declined more than 8% since the day of its second-quarter results on Jan 29 to close at $408.43 on Friday.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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