The Australian Government has signed a memorandum of understanding (MoU) with Microsoft as part of efforts to strengthen the nation’s artificial intelligence (AI) capabilities.
According to an official government media release, the agreement is the second such arrangement under the government’s National AI Plan, which outlines Australia’s ambition to harness the benefits of AI while ensuring its safe and responsible use.
The plan includes a commitment to collaborate with leading global technology companies to support the development of domestic AI capability.
The government said the MoU is a high-level, non-legally binding arrangement designed to set shared expectations and signal intent to work with industry partners. It aims to encourage responsible AI development, attract investment, and enhance safety measures, while aligning with Australia’s national interests.
Officials noted that the government remains open to establishing similar agreements with other technology providers as part of its broader strategy to build capability and foster innovation in the AI sector.
According to the release, Microsoft’s role in the collaboration reflects its position as a provider of digital infrastructure and AI-enabled tools widely used across Australia. The partnership is expected to contribute to strengthening the country’s AI ecosystem, as well as its safety and security settings.
The government also referenced Microsoft’s previously announced $5 billion investment to expand its Australian data centre footprint from 20 to 29 sites over two years, aimed at increasing national computing capacity. The company has also worked with local organisations through initiatives such as the Microsoft Datacentre Academy to support digital skills development.
Under the MoU, Microsoft has indicated its intention to continue investing in Australia’s AI and cloud computing capabilities, align with government expectations for data centres and AI infrastructure, and assist in identifying future infrastructure needs.
The company is also expected to collaborate with the government on AI safety, workforce capability, and delivery of the Australian Public Service AI Plan, while exploring further opportunities for cooperation.
The government said it welcomed ongoing engagement with Microsoft as it seeks to advance the objectives of the National AI Plan and position Australia to benefit from the growing adoption of AI technologies.
