SYDNEY, April 23, 2026 (BSS/AFP) - Microsoft will invest $18 billion in Australia over the next three years, upgrading government cyber defence tools and supercomputers used for artificial intelligence, the company said Thursday.

Microsoft chief executive Satya Nadella said it was the US-based firm's "largest-ever" investment in Australia.

It follows a $3 billion investment Microsoft announced in 2023 to build a string of data centres across Australia.

"Australia has an enormous opportunity to translate AI into real economic growth and societal benefit," Nadella said while visiting Australia on a global tour touting Microsoft's AI wares.

The investment would be used to upgrade supercomputers used to churn through massive data sets powering the development of artificial intelligence.

Microsoft is also working with the Australian government to bolster its cybersecurity.

"We want to make sure all Australians benefit from AI," said Australian Prime Minister Anthony Albanese.

"Microsoft's long-term investment in our national capability will help deliver on that plan -- strengthening our cyber defences and creating opportunity for Australian workers and businesses."

Artificial intelligence giant Anthropic said this month it was sizing-up data centre investments in Australia.

With immense renewable energy potential and vast stretches of uninhabited land, Australia has billed itself as a prime location for the power-hungry data centres needed to power AI.