Microsoft is making bold moves to expand its AI and cloud infrastructure in Japan

If you were the second-largest cloud services company by revenue in the world, what would be your next move?

Simply enter new markets to strengthen your dominance. That's exactly what Microsoft is doing right now as other major players are increasing their investments in AI and cloud data centers.

As part of its overseas expansion plans, the software giant announced plans to boost its AI and cloud play with a $2.9 billion investment over the next two years in Japan.

The investment will be the company's largest in its 46 years of operation in the Asian country and is expected to be used to build an AI research lab in Tokyo as well as skill three million people in AI.

According to the company, the investments will "support Japan’s key pillar to tackle deflation and stimulate the economy by expanding the infrastructure, skilled talent, and security required to accelerate Japan’s digital transformation and adoption of AI.