Microsoft to invest $5b in Australia, Anthony Albanese says


Legislation to sell Virginia-class submarines to Australia and allow for the transfer of military technology has become bogged down in Congress amid claims from Republicans that the collaboration could lead to fewer submarines being built for the US defence forces.

“There’s been real progress in the passage of the relevant pieces of the AUKUS legislation,” Dr Rudd said. “We need to be patient, but I do see things moving in the right direction and the PM’s engagement on this in the days ahead will be of deep importance.

“I’m always inspired by the level of bipartisan support for what we’re seeking to do with AUKUS, not just in terms of the future of nuclear-powered conventionally armed submarines, but also our ambition to create a seamless Australia-US defence science and technology industry. I think this is on track, but there’s still some hard roads to be crossed.”

In his first remarks of the four-day White House visit, which was offered by Mr Biden after he cancelled plans to visit Sydney in May, Mr Albanese said the relationship with the US was Australia’s most important.

“In today’s turbulent world, it is a relationship that provides security, stability, based upon our common values and our position as great democratic nations working together to promote those values throughout the Indo-Pacific and throughout the world,” Mr Albanese said.

While division among House of Representatives Republicans over appointing a new speaker has disrupted Mr Albanese’s outreach with congressional leaders, he will speak to key members on committees dealing with AUKUS-related “legislation that’s required to turn this vision into a practical reality”.

Senate Republicans are holding up passing the Pentagon’s budget bills because of a provision to authorise the sale of at least three Virginia-class submarines to the Australian navy, citing concerns about reducing the size of the US fleet.

Mr Albanese also confirmed the Middle East would feature in talks following Hamas’ October 7 terror attack in Israel, the humanitarian crisis in Gaza and the risk of Iranian-backed proxies widening the war.

“There is no doubt that the focus of the world is on the unrest in the Middle East following Hamas’ invasion, and atrocities that were committed in Israel,” Mr Albanese said.

Biggest investment in 40 years

The US visit will also provide Mr Albanese with an opportunity to get the latest American thinking – and share his own thoughts – ahead of his ice-breaking, three-day trip the following week to China, where Mr Albanese will meet President Xi Jinping.

Microsoft’s pledge of an additional $5 billion investment into its Australian operations gives Mr Albanese’s visit a springboard for further announcements this week about boosting economic ties with the US, including collaboration on the Biden administration’s Inflation Reduction Act and its green energy subsidies.

Microsoft said the investment would increase the company’s computing capacity by 250 per cent over two years, helping Australia seize the opportunities of cloud computing and artificial intelligence.

“This is our largest investment in Microsoft’s 40-year history in Australia and testament to our commitment to the country’s growth and prosperity in the AI era,” Microsoft vice chairman and president Brad Smith said.

The money will allow the company to ramp up the number of data centres in operates in Sydney, Melbourne and Canberra from 20 to 29, establish the Data Centre Academy, in partnership with TAFE NSW, from 2024 to train 200 people to build up their applied data skills in its first two years.

Cyber threats

Microsoft will also provide an extra 300,000 places under its global skills program to train Australians to gain knowledge for the cloud and AI-enabled digital economy.

“This is a major investment in the skills and workers of the future, which will help Australia to strengthen our position as a world-leading economy,” Mr Albanese said.

“A priority for my government is to ensure all Australians benefit from economic growth. This means that we need to provide the skills to enable Australians to succeed in the jobs of the future.”

Microsoft will also collaborate with the Australian Signals Directorate on the Microsoft-ASD Cyber Shield to harden Australia from cyber threats to individuals, businesses and governments.

The Cyber Shield partnership will improve joint capability to identify, prevent and respond to cyber threats.

It will also bolster the national threat intelligence-sharing capabilities, focusing on detecting, analysing and defending against sophisticated nation-state cyber threats launched by countries such as China and Russia.

The public-private partnership is one of the first initiatives under the government’s revamped cybersecurity strategy, after Home Affairs Minister Clare O’Neil last year ordered a review following the high-profile Medibank and Optus hacks.

“A strong economy requires protection from cyber threats. I welcome Microsoft’s collaboration with the Australian Signals Directorate to enhance cybersecurity for households and business,” Mr Albanese said.

Monday’s Microsoft announcement followed a wreath-laying ceremony at the Tomb of the Unknown Soldier at Arlington National Cemetery.

Mr Albanese also visited the gravesites of two Australians buried in Arlington: RAAF officer Francis Milne, who died while serving on a US mission in Papua New Guinea in 1942, and Yvonne Kennedy, who was on American Airlines Flight 77 when it was hijacked and crashed into the Pentagon during the September 11, 2001, terrorist attacks.



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