Microsoft will assist Australia in building a “cyber shield”.

Prime Minister Anthony Albanese, currently on an official visit to the United States at the invitation of President Joe Biden, has unveiled a significant collaboration between the Australian government and tech giant Microsoft. 

The partnership aims to bolster the nation's online security infrastructure with a substantial investment, establishing what they call a “cyber shield” to ward off global digital threats.

Microsoft's President, Brad Smith, joined Albanese in announcing the tech giant's $5 billion commitment to Australia, marking Microsoft's most extensive investment in the country in its 40-year history.

The initiative prioritises expanding digital infrastructure and fostering expertise, with a strong emphasis on cloud technology and artificial intelligence.

In collaboration with the Australian Signals Directorate, the national cybersecurity and online warfare agency, Microsoft will embark on the creation of the “Microsoft-Australian Signals Directorate Cyber Shield” (MACS). 

While not explicitly targeting specific nations, Microsoft's focus is directed toward safeguarding against “sophisticated nation-state cyber threats”.

When questioned about the intent to counter potential threats from China, Albanese emphasised that the endeavour's primary objective is to strengthen Australia's cybersecurity capabilities. 

The initiative represents one of the initial steps outlined in the Australian Cyber Security Strategy, devised in response to cyberattacks like those on Optus and Medibank last year. 

The ultimate goal is to position Australia as the world's most cyber-secure nation by 2030.

Albanese further highlighted the severe consequences of cyberattacks and stressed that the cyber shield project will enhance Australia's resilience to such attacks while identifying potential vulnerabilities.

In addition to the cyber shield project, Microsoft's investment plan encompasses the establishment of nine new data centre sites in Sydney, Canberra, and Melbourne, supplementing the existing 20. 

This expansion anticipates the demand for cloud services to nearly double by 2026.

As part of their commitment to enhancing digital capabilities, Microsoft has pledged to establish a “Datacentre Academy” in collaboration with TAFE NSW, aiming to train 200 individuals within two years. 

Furthermore, the company intends to support other programs focused on providing digital skills training to benefit 300,000 Australians.