Microsoft President Brad Smith has announced a $2.1 billion investment to expand AI and cloud infrastructure in Spain, representing the company's most significant financial commitment in the country in nearly 40 years.

The investment aims to enhance government efficiency and cyber security in Spain through AI solutions, and includes the construction of major data centers in Madrid and Aragon.

Microsoft's investment is timed with the upcoming EU AI Act, indicating strategic alignment with European regulatory frameworks and an effort to solidify its position in the face of competitors like Google.

Economic benefits projected from the investment include the creation of 69,000 new jobs by 2030 and an addition of approximately 8.4 billion Euros to Spain's GDP.

The initiative reflects Microsoft's broader vision for supporting Spain's digital transformation and security, and is part of a larger pattern of investments in European AI capabilities, including recent efforts in Germany and a new R&D hub in Barcelona.