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The Guardian - AU
The Guardian - AU
National
Katharine Murphy and Daniel Hurst

Microsoft to help Australia’s cyber spies amid $5bn investment in cloud computing

Microsoft president Brad Smith
Microsoft vice-chair Brad Smith, who met with prime minister Anthony Albanese in Washington on Monday. Photograph: Jason Redmond/AFP/Getty Images

Microsoft says it will invest an additional $5bn in Australia over the next two years to expand hyperscale cloud computing capacity while collaborating with the Australian Signals Directorate (ASD) to boost domestic protection from cyber threats.

Anthony Albanese confirmed the new investment on the opening day of his state visit to the United States during an event at the Australian embassy in Washington, flanked by Microsoft’s vice-chair and president, Brad Smith, and Microsoft Australia and New Zealand Managing director Steven Worrall.

The announcement in Washington comes ahead of the Albanese government articulating a new Australian cybersecurity strategy covering the period to 2030. Release of the new Australian strategy is expected within weeks.

After starting his day in the US capital with a wreath-laying ceremony at the Tomb of the Unknown Solider at Arlington National Cemetery and a visit to the gravesites of two Australians buried there, Albanese confirmed Microsoft’s plans at an event during the afternoon.

Microsoft says the collaboration with the Australian government to boost domestic cybersecurity will enhance “joint capability to identify, prevent and respond to cyber threats, which are growing in both frequency and severity”.

In a statement, the computing giant said the exchange of cyber threat information leads to better protection for Australian residents, businesses and government entities. Microsoft said the focus of its activity would be on detecting, analysing and defending against sophisticated nation-state cyber threats.

The director general of ASD, Rachel Noble, said the investments would strengthen the agency’s “strong partnership with Microsoft and … turbocharge our collective capacity to protect Australians in cyberspace”.

A recent threat report from the Australian Cyber Security Centre found one incident is reported on average in Australia every seven minutes. More than 76,000 incidents of cybercrime were reported in 2021-22.

Albanese said he welcomed Microsoft’s collaboration with ASD because a strong economy required protection from cyber threats.

The prime minister also characterised Microsoft’s commitments as “a major investment in the skills and workers of the future, which will help Australia to strengthen our position as a world-leading economy”.

Microsoft says the new investment in Australia will increase its computing capacity by around 250% over the next two years, enabling the company to meet growing demand for cloud computing services. It would also help Australia capitalise on “the significant economic and productivity opportunities presented by the latest AI technology”.

The computing giant has committed to supporting an additional 300,000 Australians as part of its global skills programs and is “working towards” launching its first Datacentre Academy in Australia in early 2024, in partnership with Tafe NSW.

The computing giant says the enhanced funding is the single largest investment in Australia during its 40-year presence in the country.

Worrall said in a statement the proposed infrastructure, skilling and cybersecurity investments and initiatives would “build on our long-term commitment to Australia, but are squarely focused on the future”.

“They will not only enable a safer and more secure digital economy, but also provide a platform to foster growth and innovation in the era of AI,” Worrall said.

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