Microsoft invests $400 million to expand Swiss data centers

Federal Councillor Guy Parmelin, Microsoft Vice Chair and President Brad Smith, and Microsoft Switzerland CEO Catrin Hinkel at an announcement of the investment in cloud and AI infrastructure in Bern, June 2, 2025.

(Image credit: Microsoft Switzerland)

published 3 June 2025

Microsoft has announced plans to invest $400 million in Swiss data centers to expand its cloud and AI infrastructure in the region.

The move comes alongside data sovereignty moves — keeping European data in Europe — which has driven billions in Microsoft investment in data centers in the region.

Earlier this year, Microsoft said its EU Data Boundary for the Microsoft Cloud was finally complete and would include Switzerland.

Microsoft launched its first data centers in Switzerland six years ago, and in 2022 opened a local Microsoft Innovation Hub. Microsoft didn't say how many jobs the investment might create, but reports from Reuters suggest the company has about 1,000 staff in Switzerland.

The $400 million in investment will focus on several projects, but primarily aims to expand and upgrade its four existing data centers near Zurich and Geneva to meet demand for cloud and AI services, the company said.

The upgrades will serve 50,000 existing customers. So far, all of Microsoft's electricity consumption in Switzerland has been covered by renewable energy purchases, and it aims to continue that sustainability work.

Microsoft ramps up data sovereignty efforts

Expanding access to those data centers inside Switzerland is key for regulated sectors like healthcare, finance, and government, according to Microsoft president Brad Smith.

In a statement confirming the move, Smith said the investment will help “further strengthen Switzerland’s long-term economic resilience and competitiveness” while ensuring the company adheres to regulatory requirements.

Switzerland ranks second globally in GitHub AI contributor share, with the number of contributors doubling since 2022. Microsoft added that the number of its Swiss customers engaging with its AI tools had increased by three percentage points to 31% over the last six months.

"We are steadfast in our mission to empower our customers and partners, as AI's true potential is unlocked when innovation meets real-world implementation," said Catrin Hinkel, CEO of Microsoft Switzerland, in a statement.

"Together, we'll continue to build on Switzerland's tradition of innovation to ensure technology delivers meaningful value to the economy and society."

Beyond data centers

Alongside the data center investment, Microsoft will partner with Switzerland Innovation Parks, which supports SMEs and startups, while also funding AI training for one million Swiss people by 2027.

The latter includes training designed specifically for apprentices, non-profits, and SMEs, as well as "broad AI literacy" through websites focused at general users.

"To ensure that Switzerland has the right skills to stay competitive, Microsoft aims to help skill one million people in Switzerland by 2027 with the goal of developing AI capabilities for education, industry, nonprofit organizations, and citizens," Microsoft said.

The tech giant also said it will invest further in working with the international organisations headquartered in Switzerland, notably creating digital services for refugees to support UNHCR.

"Microsoft will expand its collaboration across the International Geneva ecosystem, working with the United Nations and international organizations to advance AI policy conversations, support global AI skilling programs, and address challenges in health, humanitarian action, and human rights," the company said.