The announcement was made in connection with US President Donald Trump's visit to the country. The American technology company's investments – equivalent to 185 billion kronor – will be directed towards infrastructure for cloud services and artificial intelligence.
The company's CEO Satya Nadella says that Microsoft in the investments will also build the UK's largest supercomputer.
The investments are intended to be rolled out over a period of four years.
The company has previously had around 6,000 employees in the country and operates several data centers.
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