Microsoft expands cloud push across Europe

Microsoft has unveiled a new set of commitments aimed at strengthening its digital presence across Europe, pledging to expand cloud and AI infrastructure while supporting the region’s economic competitiveness.

Announced by Microsoft President Brad Smith in Brussels, the ‘European Digital Commitments’ include a promise to increase European data centre capacity by 40% within two years, bringing the total to over 200 across 16 countries.

Smith explained that Microsoft’s goal is to provide technology that helps individuals and organisations succeed, rather than simply expanding its reach. He highlighted AI as essential to modern economies, describing it as a driving force behind what he called the ‘AI economy.’

Alongside job creation, Microsoft hopes its presence will spark wider economic benefits for customers and partners throughout the continent.

To ease concerns around data security, particularly in light of USEU geopolitical tensions, Microsoft has added clauses in agreements with European institutions allowing it to legally resist any external order to halt operations in Europe.

If such efforts failed, Microsoft has arranged for European partners to access its code stored securely in Switzerland, instead of allowing disruptions to affect vital digital services.

Although Microsoft’s investments stand to benefit Europe, they also underscore the company’s deep dependence on the region, with over a quarter of its business based there.

Smith insisted that Microsoft’s global success would not have been possible without its European footprint, and called for continued cooperation across the Atlantic—even in the face of potential tariff disputes or political strains.

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Google cuts 200 jobs as AI and cloud take priority

Google has laid off around 200 employees from its global business unit as the company sharpens its focus on AI and cloud services. The job cuts, which affected the sales and partnerships team, were first reported by The Information and later confirmed by Google.

The reduction forms part of a wider resource reallocation across parent company Alphabet, reflecting a broader trend in the tech sector.

Big tech firms, facing increased demand for AI development and data centre expansion, have been streamlining operations and shifting investments towards emerging technologies. Earlier this year, Meta also reduced its workforce by around 3,600 employees, citing performance-based criteria for the decision.

In a statement to Reuters, Google described the layoffs as a ‘small’ adjustment designed to streamline operations, improve collaboration, and enhance responsiveness to customer needs.

However, the latest move adds to a growing list of job cuts across Google since early 2023, when the company slashed 12,000 jobs — 6% of its global workforce.

Only last month, Google also reduced roles in its platforms and devices group. That round of layoffs affected teams working on key products such as Android, Pixel, and Chrome. As the company continues to prioritise AI and cloud growth, further workforce adjustments may be expected in the months ahead.

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Chennai team wins ₹50 lakh at Agentforce Hackathon for AI hotel solution

AI took centre stage at the Agentforce Hackathon 2025 during TrailblazerDX in Bengaluru, where a Chennai-based team from Bounteous x Accolite Salesforce claimed the grand prize of ₹50 lakhs. Their AI-powered project impressed judges and attendees, standing out among 195 competing teams.

The team, calling themselves ‘Aichemist’, included Mayur Kinhekar, Rajaseeman PS, Yogeshwar Andi Sudhakaran, Sheetalraj Gangadhar, and Vijay Kalidasan. Together, they set out to revolutionise hospitality using Salesforce’s cloud platform.

Their Smart Hotel Agent uses data cloud, loyalty tiers, Slack, and service tablets to deliver seamless, personalised hotel experiences. ‘We are thrilled with this achievement,’ said senior consultant Mayur Kinhekar. ‘We are proud to be AI agents helping shape the future of AI.’

Team lead Rajaseeman PS explained that their goal was to reduce the need for human interaction in routine hotel tasks. By giving guests tablets, they created a solution that manages everything from check-in to check-out with ease.

In one example, Rajaseeman noted how a spill in a hotel room could be instantly reported and resolved through automated notifications sent to the appropriate department, bypassing traditional calls to the front desk.

By using AI to streamline services, the team not only improved guest experiences but also freed up hotel staff to focus on critical tasks. Their innovative approach captured the imagination of the hackathon’s judges and earned them the prestigious top spot and grand prize.

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AWS expands in Latin America with first Chile cloud region

Amazon Web Services (AWS) will invest $4 billion to build its first cloud region in Chile by late 2026, marking a significant expansion of its Latin American presence.

The new region will feature three availability zones and become AWS’s third region in the region after Brazil and Mexico, and its 37th worldwide.

The company confirmed that all necessary permits for construction and operation have been secured. AWS expects the Chilean region to provide substantial computing power for generative AI, data analytics and enterprise applications.

The decision reflects the growing demand for low-latency cloud services as Chile’s cloud market is projected to expand more than 30 percent in 2024 and reach $1.9 billion by 2025. IDC forecasts continued growth at about 20 percent annually through 2028.

Local organisations, including LATAM Airlines, AgroSuper and Andrés Bello University, already rely on AWS for critical workloads. Partners such as Deloitte, Accenture and NTT will help support customer onboarding and manage systems.

AWS’s expansion follows its entry into Chile in 2019 with a content delivery edge location, followed by the addition of Outposts, Direct Connect, and a Local Zone over the past few years.

Environmental considerations remain central to the project. AWS will limit water cooling to only 4 percent of the year — equivalent to the annual consumption of two average Chilean households — and primarily use air and evaporative cooling.

The company reached 100 percent renewable-energy usage in 2023 and targets net-zero carbon emissions by 2040 as part of its Climate Pledge.

Competition is heating up in Chile’s cloud market. Microsoft Azure plans to open its local region this year, while Google faced regulatory setbacks after a court partially revoked its permit for a $200 million data centre project.

AWS hopes its early investment will help it capture a larger share of the Latin American cloud services sector, reinforcing its global network of 36 regions and 114 availability zones.

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Amazon launches first Kuiper satellites to challenge Starlink

Amazon has launched the first 27 satellites of its Project Kuiper broadband network into low-Earth orbit, marking a major step in its $10bn plan to deliver global internet coverage and rival Elon Musk’s Starlink.

The satellites were launched aboard a United Launch Alliance Atlas V rocket from Cape Canaveral, Florida, after weather delays earlier this month. They are the first of over 3,200 that Amazon intends to deploy, with the aim of reaching underserved and remote areas around the world.

Project Kuiper, announced in 2019, has been slow to get off the ground. Amazon must deploy at least half its satellite constellation—1,618 units—by mid-2026 to meet US regulatory requirements, though analysts expect the company to seek an extension.

The launch puts Amazon into direct competition with SpaceX, which has already deployed over 8,000 Starlink satellites and serves more than 5 million users across 125 countries.

While SpaceX dominates the sector, Amazon hopes its strengths in cloud computing and consumer devices will give Kuiper an edge.

Jeff Bezos said he expects both Kuiper and Starlink to succeed, citing strong global demand for satellite internet. Kuiper consumer terminals will sell for under $400 and come in various sizes, including one comparable to a Kindle.

Amazon has booked 83 future launches with partners including ULA, Arianespace, and Bezos’s Blue Origin, making it the biggest satellite launch programme in history.

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AI investments lift Alphabet despite cloud slowdown

Alphabet’s shares climbed over 5% in premarket trading after the company reported strong earnings that reassured investors of its AI strategy.

Despite a slight deceleration in advertising and cloud growth, Google’s parent company beat expectations, signalling that its major bets on artificial intelligence are starting to pay off.

Advertising revenue, which forms the backbone of Alphabet’s business, rose 8.5% in the first quarter to $66.89 billion—outperforming analyst projections.

Although this marks a slowdown from the previous quarter’s growth, it reinforces investor confidence in Alphabet’s ability to monetise AI across its services. Meanwhile, Google Cloud revenue grew by 28%, falling just short of forecasts and indicating some cooling in the segment.

The company is pressing ahead with its ambitious infrastructure plans, reaffirming a $75 billion investment in expanding data centre capacity.

Alongside Microsoft’s even larger plans, these efforts contribute to Big Tech’s anticipated $320 billion AI investment in 2025. However, growing trade tensions and fears of an economic downturn have led to questions about the sustainability of such capital spending.

While Alphabet remains a key player in the AI race, legal challenges loom large. Ongoing antitrust actions in the United States could compel the company to divest core assets like Chrome, as regulators seek to limit Google’s market dominance.

Nevertheless, many analysts remain optimistic, with several brokerages raising their price targets, pointing to Alphabet’s ability to deliver GenAI-powered products at scale despite headwinds.

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Google boosts AI in coding and cloud growth

More than 30% of all code at Google is now written with the help of AI, according to CEO Sundar Pichai during Alphabet’s Q1 2025 earnings call.

Developers are embracing AI-generated suggestions in nearly one out of every three code changes, thanks to improved models and the rollout of agentic workflows—AI systems designed to manage complex, multi-step tasks.

Pichai noted that AI-assisted coding is expanding across the company, with customer service teams leading the way in adoption.

Alphabet reported strong financial results, with quarterly revenue climbing 12% year-over-year to $90.2 billion. Net income rose sharply by 46% to $34.5 billion, and earnings per share jumped 49%.

While there was a slight quarterly dip in revenue from the previous quarter, Google’s core advertising business, YouTube, and Google Cloud all contributed to year-on-year growth. Cloud revenue, in particular, increased 28% due to surging demand for AI and infrastructure products.

The recently released Gemini 2.5 Pro model was described by Pichai as ‘state-of-the-art’, outperforming rivals across benchmarks and landing the top spot on Chatbot Arena. Gemini models are now integrated across 15 Google products used by more than half a billion people.

Features like Gemini Live and AI-powered camera tools are being rolled out on Android and Pixel devices, while Google Assistant will also receive a Gemini upgrade later this year.

Instead of slowing down, Google is accelerating its AI development with initiatives like Gemini Robotics Models, the AI Co-Scientist for research, and the continued success of AlphaFold, used by over 2.5 million scientists.

With over 200% growth in users of AI Studio and Gemini API, and more than 140 million downloads of Gemma models, Google is clearly positioning AI at the centre of its future across products, platforms, and research.

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Lenovo unveils compact edge AI server

Lenovo has introduced the ThinkEdge SE100, a compact AI inferencing server aimed at bringing edge AI within reach for businesses of all sizes.

Rather than relying on large data centres for processing, this server is designed to operate on-site in space-constrained environments, allowing data to be processed locally instead of being sent to the cloud.

The SE100 supports hybrid cloud deployments and is part of Lenovo’s new ThinkSystem V4 family. While the V4 systems are built for AI training, the SE100 is intended for inferencing, which is less demanding and doesn’t require power-hungry GPUs.

Lenovo says the unit is 85% smaller than a typical 1U server and draws under 140W, even with GPU configurations.

Engineered to be both energy-efficient and quiet, the SE100 uses Neptune liquid cooling instead of traditional fans, making it suitable for public spaces. Its design also helps extend system health and lifespan by reducing air flow needs and lowering operating temperatures.

Lenovo’s vice president of infrastructure products, Scott Tease, stated the SE100 is a cost-effective solution that simplifies AI deployment at the edge.

Its flexible design adapts to diverse business needs, offering low-latency, high-performance inferencing without the complexity or expense of full-scale AI infrastructure.

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EU prepares new data strategy for AI growth

The European Commission will soon launch a consultation on its upcoming Data Union Strategy, a key part of efforts to boost Europe’s leadership in AI.

The strategy, set to be published by the end of the year, aims to make it easier for businesses and public bodies to share data securely and efficiently across the EU.

The initiative supports the broader AI Continent Action Plan, expected to be unveiled this week, which seeks to encourage faster adoption of AI technologies by European companies.

Instead of relying on fragmented systems, the Commission wants to improve data access, digital infrastructure, and cloud capabilities while investing in talent and streamlining complex processes.

The plan includes the creation of AI factories where companies can train models using EU-based resources, and a separate Cloud and AI Development Act later this year will promote energy-efficient investments to support these goals.

Public feedback on the Data Union Strategy will be gathered from April to June as part of the consultation process.

Despite the ambition, the Commission acknowledges ongoing concerns such as uncertainty around international data flows and challenges accessing suitable data for generative AI.

Strict privacy laws like the GDPR, instead of enabling wider AI training, have led to frustration from major tech firms over regulatory delays in Europe.

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Microsoft pauses $1 billion data centre project in Ohio

Microsoft has announced it is ‘slowing or pausing’ some data centre construction projects, including a $1 billion plan in Ohio, amid shifting demand for AI infrastructure.

The company confirmed it would halt early-stage development on rural land in Licking County, near Columbus, and will repurpose two of the sites for farmland.

The decision follows Microsoft’s rapid scaling of infrastructure to meet the soaring demand for AI and cloud services, which has since softened. The company acknowledged that such large projects require continuous adaptation to align with customer needs.

While Microsoft did not specify other paused projects, it revealed the suspension of later stages of a Wisconsin data centre expansion.

The slowdown also coincides with changes in Microsoft’s partnership with OpenAI, with the two companies revising their agreement to allow OpenAI to build its own AI infrastructure. This move reflects broader trends in AI computing needs, which are expensive and energy-intensive.

Despite the pause in Ohio, Microsoft plans to invest over $80 billion in AI infrastructure this fiscal year, continuing its global expansion, though it will now strategically pace its growth to align with evolving business priorities.

Local officials in Licking County expressed their disappointment, as the area had been a hub for significant tech investments, including those from Google and Meta.

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