Global tech giant Microsoft says it is making “landmark” spending in Canada with $7.5 billion set to go towards developing artificial intelligence capacity in Canada, according to a statement on Tuesday.
The $7.5 billion will be invested over the next two years, bringing Microsoft’s total AI investment in Canada between 2023 and 2027 to $19 billion.
“Today we are announcing the most important commitment in Microsoft Canada’s history. We’re adding to our investments—with a total of $19 billion CAD between 2023 and 2027, including more than $7.5 billion CAD in the next two years,” the company said.
“We’re building new digital and AI infrastructure needed for the nation’s growth and prosperity, with new capacity beginning to come online in the second half of 2026.”
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Microsoft says the spending will expand its Azure Canada Central and Canada East datacentre regions, which are intended to “power everything from modernized public services to advanced AI innovation—responsibly and within Canadian borders.”
Along with the investment, the U.S.-based tech giant is also laying out a five-point plan to “protect Canada’s digital sovereignty.”
Microsoft said it is launching an Ottawa-based Threat Intelligence Hub, to detect and counter threats from nations such as China, Russia, North Korea “and countries across south Asia and the Middle East.”
“In recent months, our team in Canada has been working to thwart China-based threat actors and has been sharing intelligence related to North Korean IT workers using stolen or fake identities to secure jobs with technology companies in Canada,” Microsoft said.
As part of its pledge “to keep Canadian data on Canadian soil,” Microsoft said it will offer in-country data processing for interactions Canadians have with its AI companion Copilot.
The announcement also included a pledge to keep Canadian data encrypted and isolated and support the growth of Canada-based AI developers.
It added that it would ensure uninterrupted operation of cloud services for the Canadian government.
“If ever confronted with an order to suspend or halt operations in Canada, we will pursue every available legal and diplomatic avenue—including litigation—to protect access to critical infrastructure,” Microsoft Canada said in the statement.
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