MEXICO CITY (Reuters) -Tech giant Microsoft will invest $1.3 billion over the next three years to build up its infrastructure in Mexico for cloud computing and artificial intelligence, the company announced on Tuesday.

The fresh funds will go toward improving connectivity and boosting the adoption of AI technology by small and-medium sized businesses (SMBs), the firm said in a statement.

The initiative aims to reach 30,000 SMBs in Mexico in three years, Microsoft said.

Already, Mexican firms such as breadmaker Bimbo and cement producer Cemex are using Microsoft's AI tools, Microsoft said.

"This is great news for our country," incoming Economy Minister Marcelo Ebrard said in a post on X.