Microsoft has significantly expanded its AI infrastructure in Australia by partnering with Telstra to leverage the telecom giant's new ultra-fast Intercity Fiber Network. This collaboration will help Microsoft meet growing customer demand for AI services by providing enhanced connectivity and increased speeds.
Telstra’s Intercity Fiber Network, which spans 8,700 miles of ultra-low-latency fiber cabling, connects major Australian cities and extends to regional and remote areas. As a foundational partner on this network, Microsoft gains access to the first routes, enabling it to deliver faster and more reliable AI services to its customers across the country.
This deal builds on the strategic partnership the two companies signed in 2022, marking one of Microsoft's largest collaborations with a telecommunications provider globally. The expansion of Microsoft’s AI infrastructure through Telstra’s network is intended to support the growing demand for AI-driven solutions, enhancing business processes, customer engagement, and innovation in Australia.
Judson Althoff, Microsoft’s chief commercial officer, highlighted the partnership's significance: “By extending our AI infrastructure, we can continue supporting our customers and partners as they unlock new opportunities and realize meaningful business value with AI. Together, [Microsoft and Telstra] are enabling AI transformation across Australia that enriches employee experiences, reinvents customer engagement, reshapes business processes, and bends the curve on innovation.”
In addition to the infrastructure partnership, Telstra has also invested in 21,000 licenses for Microsoft’s AI-powered productivity assistant, Copilot for Microsoft 365. This tool provides AI-driven enhancements for platforms like Word, PowerPoint, and Outlook, helping Telstra employees streamline tasks such as summarizing meetings and emails. Following a successful trial involving 300 employees, Telstra plans a phased rollout of Copilot across its workforce.
Vicki Brady, Telstra’s CEO, emphasized the impact of integrating AI tools like Copilot into the company's operations: “We’re dedicated to equipping our people with the best AI technology and upskilling them to thrive in the workforce of the future. Giving our team access to Copilot not only gives them the space and time to spend on more meaningful tasks but also fosters a culture of continuous learning, improvement, and innovation as we drive digital and AI transformation through our business.”
Microsoft’s partnership with Telstra is part of a broader effort to ensure its network infrastructure is prepared to handle the increasing demand for AI services. The company is also expanding its data center footprint globally, with new sites under development in France, Malaysia, Indonesia, and Japan, further bolstering its capacity to support AI workloads.
This collaboration marks a significant step in Microsoft's commitment to enhancing AI capabilities and infrastructure in Australia, positioning the company to meet the needs of its customers and drive innovation in the region.
