TOKYO (Realist English). Shares of Sakura Internet surged by more than 20% on Friday after Microsoft announced plans to invest heavily in artificial intelligence infrastructure in Japan.
The US tech group said it is in discussions with Sakura Internet and SoftBank Corp. to develop domestic AI computing capacity, including the deployment of graphics processing units (GPUs) within Japan.
Microsoft plans to invest $10 bn in the country between 2026 and 2029. The funding will be used to build AI infrastructure, strengthen cybersecurity systems and train up to 1 million engineers and developers by 2030.
The announcement came during a visit to Japan by Microsoft vice chair and president Brad Smith, who held talks with Prime Minister Sanae Takaichi.
According to Microsoft, the partnership will allow data to be processed locally, supporting the development of advanced AI systems, including domestic large language models. The move is also designed to address regulatory and security concerns around data sovereignty.
SoftBank and Microsoft Japan are additionally exploring a joint solution that would allow users of Microsoft Azure to access SoftBank’s AI computing platform.
The market reacted sharply. Sakura Internet shares jumped more than 20%, while shares of SoftBank Group rose modestly, alongside gains in SoftBank Corp.
Microsoft said demand for AI services in Japan is rising rapidly. Around one in five working-age individuals in the country already use generative AI tools, compared with a global average of roughly one in six, according to the company’s AI Diffusion Report.
From a broader perspective, the investment underscores intensifying competition among major economies to build domestic AI infrastructure and reduce reliance on foreign data processing. For Japan, the partnership signals a shift toward strengthening technological sovereignty, while for Microsoft it reinforces its strategy of embedding AI ecosystems within key regional markets.