Microsoft has announced a $700 million (2.8 billion zloty) investment in Poland, Report informs via NFP.

The firm plans to focus on expanding its existing data center in the country in order to support the development of AI, strengthen cybersecurity and boost competitiveness.

“This investment by Microsoft represents an enormous vote of confidence in the Polish people, in the Polish economy, in the government of Poland and its leadership,” said Microsoft’s vice chair and president Brad Smith, speaking in Warsaw alongside Polish Prime Minister Donald Tusk.

“We do not make investments of this magnitude lightly,” he added. “But we have the confidence to invest here in Poland because of the work of recent years and what that has enabled us to look forward and see for the future.”

In 2020, under Poland’s former government, Microsoft announced that it would invest $1 billion in Poland, including opening its first data center in the region. That center subsequently started operating in 2023.

Today, Smith announced the “second phase” of that investment, which will be implemented between now and the summer of 2026 and involve “an expansion of AI and our data center capacity here in Poland”.

As part of its plans, Microsoft intends to “strengthen our cybersecurity work with the Polish defense forces”, said Smith, noting that such cooperation was already “rapidly deepened” after Russia’s full-scale invasion of Ukraine in 2022.

Smith also noted that Poland has “become a center for startup energy” and scientific advances. Microsoft’s new investment will further “advance [Poland’s] competitiveness”.

Speaking alongside Smith, Tusk said that Microsoft’s “plans for Poland prove that our country is a place worth investing in”. This is “an investment in our future, our security, our young generation, startups and scientists”.