Microsoft builds cloud data center in eastern Austria – Vienna news

Austria will be one of 64 such data center regions in the future, Microsoft Austria chief Dorothee Ritz announced on Tuesday at a press conference with Federal Chancellor Sebastian Kurz (ÖVP) and Finance Minister Margarete. Schramböck (ÖVP).

Market researcher IDC calculated the macroeconomic benefits of such a data center for the next four years at more than 2 billion euros, Ritz said. “This is much-needed economic growth and it will create 29,000 additional jobs over the next four years.” – not only with Microsoft, but also with local customers and partners.

There will be multiple data centers that will be secured against each other, Ritz explained, but the exact locations could not be disclosed for security reasons.

Microsoft does not receive a special tax incentive for the investment, Schramböck said. Microsoft would have the general subsidies available, such as the 14 percent investment premium for digital investments.

“Our stated goal is to be one of the best countries in Europe in the field of digitization,” Kurz said, “because we know that our economy and our industry can only remain competitive if we are particularly well positioned in this area.”

It is by far the largest investment Microsoft has made in Austria, Microsoft president Brad Smith said in a recorded video message. Smith is Microsoft’s chief legal officer and number two behind CEO Satya Nadella. The benefit for Austria is considerable, Smith said. Consumers, businesses, and the public sector would immediately notice this at a higher rate, but it would also lower costs and increase safety. “We spend more than a billion dollars a year constantly improving our security technology. We have more than 3,000 security professionals working for us.”

The data center in Austria means that data is processed directly in Austria, “under the governance and control of the EU General Data Protection Regulation,” Ritz emphasized. The GDPR applies at Microsoft around the world. “Any request for disclosure requires a legal basis, that is, a court order. Microsoft has already successfully sued the US government several times in the past against disclosure of data.” Erste Group and BAWAG, which as banks have particularly high security requirements, have already announced that they will use Microsoft’s new data center.

“Our stated goal is to be one of the best countries in Europe in the field of digitization,” Kurz said, “because we know that our economy and our industry can only remain competitive if we are particularly well positioned in this area.”

According to IDC, Austria is not a pioneer in the use of new technologies. However, in addition to the many negative consequences, the crown crisis is also causing increased demand for e-learning and distance learning platforms for schools. Furthermore, almost half of the employees now also work from home. The tourism industry, which has been particularly affected by Corona, is also looking for innovations: museums, for example, are technically modernizing to be able to offer virtual tours through their exhibits.

Together with the Ministry of Economy, which is responsible for digitization, the establishment of a “Digital Center of Excellence” was announced on Tuesday in order to modernize the infrastructure and use of IT in the public sector. To this end, a two-year training program for public sector employees will be launched. A total of around 120,000 people in Austria will receive information technology training courses in cooperation with AMS by 2024.

As part of the center, the Ministry of Economy and Microsoft want to establish a cybersecurity network that includes universities, chambers of commerce, industry representatives, and data protection organizations. The goal is to define the IT security requirements for cloud computing.