The investment - the company's largest in the 46 years of its operations in the country - will also go towards skilling three million people in AI and setting up a Microsoft Research Asia lab in Tokyo.
Server operators are expanding their data centers and cloud computing assets globally to support a boom in AI applications and workloads, after the late 2022 launch of ChatGPT.
Amazon.com's cloud unit (AMZN.O) is investing $10 billion in Mississippi and another $5.3 billion in Saudi Arabia towards data centers in those regions. Google (GOOGL.O) is building a data center just outside London for $1 billion.
Microsoft's Azure, Alphabet-unit Google Cloud and Amazon Web Services are the top three cloud computing companies in the world.
