The investment will see the doubling of Microsofts AI and data centre infrastructure capacity in Germany, said Smith.
It marks the largest single investment in Microsofts 40-year history in the EU country.
German Chancellor Olaf Scholzwelcomedthe move, noting that it signifies a vote of confidence for Europes largest economy.
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This would help to keep data latency between data centres and applications as low as possible.
The move tops the list of the tech giants largest foreign investments.
Last year, the firm pumped $3.14bn and $3.25bn into the UK and Australia respectively.
This mindset is embodied in the startups themselves.
Story bySion Geschwindt
Sion is a freelance science and technology reporter, specialising in climate and energy.
