Microsoft and the Australian Government has formalised a first-of-its-kind partnership to strengthen the nation’s digital resilience – a move designed to bolster national security and support economic stability. Under an agreement signed today in Canberra by the Hon Tony Burke MP, Minister for Home Affairs and Minister for Cyber Security, and Lisa Monaco, Microsoft’s President of Global Affairs, the two parties established a framework for strategic cooperation on secure cloud infrastructure, cybersecurity, artificial intelligence (AI), and critical infrastructure protection.
The Memorandum of Understanding (MOU) outlines joint initiatives to protect Australia’s most critical digital assets and ensure vital services remain secure and under Australian control, especially amid evolving cyber threats in the AI era. Focus areas include reinforcing the resilience of critical connectivity networks and data centre infrastructure, enhancing cybersecurity threat information-sharing and response, supporting the secure adoption of AI in government, strengthening the resilience of critical infrastructure providers, and collaborating on policy and regulatory measures to advance national digital resilience.
“We can’t stop all cyber attacks. But agreements like this make sure we’re more resilient. There’s no better example of private/public partnership than cyber,” said Minister Burke. “We rely on each other to keep Australians safe online. Microsoft is a critical partner in cyber security and this agreement takes our relationship to the next level.”
“Digital resilience is foundational to Australia’s national and economic security in the AI era. This partnership demonstrates what is possible when government and industry work together to strengthen critical systems, support trusted innovation, and ensure new technologies are deployed securely and responsibly in the national interest,” said Lisa Monaco, President of Microsoft Global Affairs. “This collaborative approach is a strong example of how governments and industry can work together to support a more digitally resilient future, delivering meaningful benefits for the economy and society.”
The MOU also establishes an operating framework for ongoing strategic dialogue between Microsoft and the Government to continually monitor progress and assess the evolving threat landscape. All efforts aim to provide trusted, sovereign digital foundations for Australia’s security and economy in the face of rapidly changing technology and threat environments.
This partnership comes at a pivotal moment in Australia’s digital and AI transformation. In April, during a visit to Sydney by Microsoft Chairman and CEO Satya Nadella, the company announced a record A$25 billion commitment to expand Australia’s AI and cloud infrastructure, strengthen cybersecurity, and equip three million Australians with workforce-ready AI skills – its largest-ever investment in the country. The commitment also included plans to expand the Microsoft-ASD Cyber-Shield to additional government agencies and foreshadowed deeper cooperation on national resilience and critical infrastructure protection, a commitment now realised through this landmark MOU.
“This agreement reinforces Microsoft’s long-term commitment as a trusted partner in Australia’s security and prosperity. We believe resilience is a growth strategy, and by strengthening our partnership with Government, we are helping provide the resilient digital foundations Australia needs to and thrive,” said Jane Livesey, President of Microsoft Australia and New Zealand. “Through continued investment in local infrastructure and expertise, and close collaboration with industry and government on security, we’re supporting Australia’s ability to innovate with confidence.”
The MOU takes effect immediately and is intended to complement existing collaboration between Microsoft and the Australian Government, reinforcing shared national security and economic resilience goals. This milestone underscores how trusted public–private partnerships can help Australia build secure, sovereign digital foundations for future growth and innovation.