Microsoft has announced its plans to spend A$5bn (£2.6bn) on expanding its artificial intelligence (AI) and cloud computing abilities in Australia over the next two years.

The company has also pledged to collaborate with Australian Signals Directorate (ASD) to boost domestic protection from cyber threats. The partnership was announced by Australian Prime Minister Anthony Albanese on the opening day of his state visit to the US. 

The pledge has been described as Microsoft’s largest-ever single investment in Australia. 

“This is our largest investment in Microsoft’s 40-year history in Australia and a testament to our commitment to the country’s growth and prosperity in the AI era,” said Brad Smith, Microsoft’s vice chair and president.

The company said it plans to use the funds to build nine new data centres in Australia, totalling 29 sites in the country, spread across Canberra, Melbourne and Sydney. 

As part of its partnership with ASD, Microsoft will...