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Microsoft Announces $1.3 Billion USD Investment in Cloud and AI Infrastructure to Promote Inclusive Growth in Mexico

Written by Dan Onchieku · 3 min read >

On September 24, 2024, during the Microsoft AI Tour in Mexico City, Satya Nadella, Chairman and CEO of Microsoft, announced a substantial $1.3 billion investment in cloud computing and AI infrastructure for Mexico over the next three years. This investment seeks to boost digital and AI skills, improve connectivity, and facilitate digital transformation for small and medium-sized businesses (SMBs) in the country.

This announcement, made as Microsoft celebrates its 38th anniversary in Mexico signals the company’s continued commitment to leveraging technology for social and economic progress. The initiative also highlights Microsoft’s role as a leader in artificial intelligence (AI), which Nadella emphasized as a transformative force with the potential to create inclusive economic growth across every sector and nation, including Mexico.

Expansion of AI Infrastructure and Programs for Economic Growth

Microsoft’s new investment aims to enhance AI infrastructure in Mexico to encourage innovation and productivity in businesses. The company will work on improving local computing capabilities, making it easier for companies to adopt and integrate AI into their operations. Through this investment, SMBs, which represent a significant part of Mexico’s economy, will have better access to advanced technologies to help them become more competitive.

Nadella underscored AI’s potential in tackling societal challenges and expanding economic opportunities in Mexico, stating:
“We are entering a new era of AI with the promise to create inclusive economic growth and opportunity across every role, industry, and country, including in Mexico.”

One key initiative supported by this investment is the Artificial Intelligence National Skills Initiative, which aims to democratize access to AI education and train 5 million people in digital skills over three years. By collaborating with government institutions, industry leaders, academia, and civil society, Microsoft seeks to equip users, developers, teachers, and organizational leaders with the skills needed to thrive in an AI-driven economy.

Microsoft’s AI Impact on Businesses and Institutions

Microsoft’s AI infrastructure has already made a significant impact on leading Mexican businesses and educational institutions. Companies like Grupo Bimbo and Cemex have implemented AI-powered solutions that have dramatically improved productivity and operational efficiency. For example, Cemex introduced Technical Xpert, an AI copilot, to enhance processes across sales, production, and supply chains.

Educational institutions are also embracing AI to modernize their learning environments. The Tecnológico de Monterrey (Tec) has launched Tecgpt, a generative AI platform developed with Microsoft, designed to improve the learning process and increase efficiency for students, faculty, and staff. This platform is one of the first of its kind in Latin America and sets a precedent for how AI can enhance education.

The Bridge Accelerator Program: AI for SMB Growth

Microsoft’s investment will also focus on helping 30,000 SMBs in Mexico enhance their digital operations through the Bridge Accelerator program. This initiative will allow these businesses to integrate AI tools and improve their readiness for North American industry value chains.

According to a recent Microsoft study titled “AI in Micro, Small, and Medium Enterprises: Trends, Challenges, and Opportunities in Mexico”, 57% of SMBs in the country were already using AI in 2023. The study found that AI was primarily used to optimize operational efficiency, make data-driven decisions, and enhance customer experiences. With the new investments, even more businesses will have the opportunity to leverage AI for growth and transformation.

AI for Good: Addressing Health, Connectivity, and Sustainability Challenges

In addition to business growth, Microsoft’s investment will prioritize social and environmental challenges through its AI for Good program. This initiative focuses on using AI to address issues in healthcare, connectivity, and sustainability.

1. Healthcare: Tackling Retinopathy of Prematurity (RoP)

One area where AI is making a significant impact is in healthcare. Retinopathy of prematurity (RoP) is a preventable cause of infant blindness, particularly prevalent in premature babies in developing countries. Microsoft’s AI for Good program has developed AI models that allow doctors in Mexico to diagnose RoP using smartphones, facilitating early intervention and saving sight.

2. Connectivity: Reaching the Unconnected

Microsoft is also expanding its efforts to bring connectivity to underserved areas in Mexico. Through its partnership with Viasat, the company plans to provide internet access to 1.45 million people by 2025, with more than 150,000 individuals expected to gain access by the end of 2025. This partnership aims to bridge the digital divide, particularly in rural and remote areas, where cellular connectivity is lacking. This initiative is being carried out across 13 states, including Hidalgo, Puebla, Veracruz, Yucatán, Quintana Roo, Chiapas, Querétaro, Campeche, Guanajuato, Jalisco, Michoacán, Oaxaca, and San Luis Potosí.

Viasat is also leading a female-led ambassador program, which partners with local women to reduce the gender digital divide, empowering them to lead connectivity initiatives in their communities.

3. Sustainability: Reducing Carbon Footprint

Sustainability is central to Microsoft’s global strategy, with a commitment to becoming carbon negative by 2030. In Mexico, Microsoft is taking significant steps toward this goal through long-term investments in renewable energy and carbon removal projects.

In collaboration with The Next 150, Microsoft has signed a 6-year deal to remove up to 95,000 tons of CO2 through a biochar project in Guanajuato. Similarly, the company has partnered with Toroto SAPI de CV for a forest ecosystem restoration project in Campeche, which will remove 234,000 tons of CO2 over one year. These initiatives not only contribute to carbon reduction but also support local communities, including farmers, while fostering biodiversity.

Microsoft’s Commitment to Mexico’s Future

Satya Nadella’s announcement also touched on the company’s ongoing efforts to promote responsible innovation in Mexico, with a focus on ensuring the ethical and sustainable use of technology. Microsoft’s AI initiatives operate under its AI Access Principles, which emphasize innovation, competition, and broad access to AI technology in ways that benefit the public.

Microsoft’s General Manager for Mexico, Rafael Sánchez Loza, praised the investment, noting that it demonstrates Microsoft’s commitment to inclusive economic growth in the country. He emphasized that the investment is aligned with the incoming Secretary of Economy, Marcelo Ebrard, to ensure maximum impact. The initiatives will empower individuals, businesses, and society by providing access to cutting-edge AI technology and digital skills training, while also contributing to sustainability goals.

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