Microsoft Corp (NASDAQ:MSFT) said on Tuesday it would invest C$19 billion in Canada between 2023 and 2027, including over C$7.5 billion in the next two years, to expand AI and cloud infrastructure and strengthen digital skills across the country.
The company, which opened its first Canadian office in Toronto in 1985, said the investment is the largest in its history in Canada. It will fund new data centres, cybersecurity initiatives, and support for Canadian AI developers.
Microsoft employs more than 5,300 people in 11 cities and partners with over 17,000 Canadian companies, supporting an estimated 426,000 jobs.
“Our commitment to Canada centres on three things: technology, trust, and talent,” Microsoft said in a blog post. “We’re building the digital backbone Canada needs to lead confidently in the AI era, while investing in the people who will power that future.”
The investment will expand Microsoft’s Azure Canada Central and Canada East datacentre regions, with new capacity coming online in the second half of 2026. The facilities will be energy-efficient, powered increasingly by renewable energy, and designed to minimize environmental impact.
Microsoft also unveiled a five-point plan to protect Canada’s digital sovereignty, including strengthening cybersecurity, keeping Canadian data on local servers, enhancing privacy protections, supporting domestic AI developers, and ensuring continuity of cloud services. A new Threat Intelligence Hub in Ottawa will monitor and counter cyber threats.
Alongside infrastructure, Microsoft is investing in skills development. Its Microsoft Elevate program aims to train 250,000 Canadians in AI by 2026. Partnerships with nonprofit and Indigenous organizations, including Actua, will expand training to youth across remote, rural, and Indigenous communities.
Microsoft said its investments already support Canadian innovators and industries including retail, finance, cleantech, and quantum computing, citing firms such as Canadian Tire, Manulife, BMO, and Gay Lea Foods.
According to Microsoft, Canada ranks 14th globally in AI adoption, with a third of the population using AI tools and growing contributions from local developers on GitHub.