Kyndryl Announces €100 Million Data, AI and Cyber Resilience Investment in France

Rhea-AI Summary

Kyndryl (NYSE: KD) has announced a significant €100 million investment in France over three years to enhance the country's digital capabilities. The investment plan focuses on three key areas:

• Hiring up to 300 experts in data, AI, and cyber resilience
• Launching an AI private cloud service for French customers
• Establishing a new digital hub in Sophia-Antipolis focused on AI & cybersecurity

The initiative comes as research shows only 28% of French business leaders believe their workforce is fully prepared for AI adoption, with 50% citing a lack of skilled talent. This investment aligns with France's national strategy to boost digital transformation and economic competitiveness.

Positive

• €100 million investment commitment over three years in France
• Creation of 300 new jobs in high-demand tech sectors
• Launch of new AI private cloud services for enterprise customers
• Establishment of a strategic digital hub in Sophia-Antipolis
• Partnership with graduate schools and research centers for talent development

Negative

• Research indicates significant AI readiness gap in French businesses (only 28% ready)
• 50% of businesses report shortage of skilled talent for AI management

Insights

Investment Strategist

Kyndryl's €100M investment in France targets AI growth opportunities while addressing critical talent shortages in a strategic European market.

Kyndryl's €100 million investment in France represents a calculated strategic expansion in a key European market. The three-year commitment focuses on three critical pillars: talent acquisition (300 specialists), infrastructure development (AI private cloud), and innovation (new digital hub in Sophia-Antipolis).

What makes this particularly significant is the timing and market positioning. Kyndryl is directly addressing documented market gaps—their own research shows only 28% of French business leaders believe their workforces are AI-ready, while 50% report skilled talent shortages. By targeting these precise pain points, Kyndryl positions itself to capture enterprise demand in high-margin service categories.

The investment's structure reveals Kyndryl's strategic direction post-IBM spin-off. Rather than pursuing broad market share, they're establishing specialized capabilities in high-growth segments where enterprise clients face implementation challenges. The AI private cloud offering is particularly notable as it targets organizations requiring secure, enterprise-grade AI implementations—addressing both technical and regulatory considerations in the European market.

The digital hub development in Sophia-Antipolis (France's "Silicon Valley") also demonstrates intelligent ecosystem positioning, connecting Kyndryl to academic institutions and the research community. This creates a talent pipeline while potentially accelerating service innovation through academic partnerships.

This investment should be viewed within France's broader "Choose France" initiative to attract technology investment, suggesting Kyndryl may receive governmental support and potential preferential access to public sector contracts, which represent significant revenue opportunities in the French market.

Investment to accelerate France's digital transformation and economic growth with a focus on new hires, AI private cloud services and a digital hub in Sophia-Antipolis

PARIS, May 19, 2025 /PRNewswire/ -- As part of "Choose France," Kyndryl (NYSE: KD), a leading provider of mission-critical enterprise technology services, announced that it will invest up to €100 million over three years in France to strengthen the country's capabilities in data, artificial intelligence (AI) and cyber resilience.

"I welcome the decision by Kyndryl, a leading player in enterprise technology services, in the expansion of their activities in France. This investment reflects the strength of our ecosystem, and the confidence France inspires when it comes to supporting ambitious technology projects. This initiative, facilitated by the teams of Business France, further reinforces our position as a leading innovation hub — built on world-class talent, a clear vision, and a stable, forward-looking environment," said Marie-Cécile Tardieu, Chief Operating Officer of Business France.

"Today's investments and initiatives aim to prepare the French economic fabric to face the challenges of tomorrow and remain competitive on the international stage," said Jérôme Calmelet, Kyndryl France President. "Kyndryl is committed to supporting French companies in their digital transitions and contributing to economic growth and innovation in France."

Kyndryl's investment embraces France's ambition to deploy new technologies and grow talent and skills for economic growth and competitiveness—and seeks to support the in-demand skills for the businesses of the future. The investment plan includes:

• The hiring of up to 300 experts and leaders in data, AI, and cyber resilience to guide and support existing and new customers in France, enhancing their enterprise readiness for future business risks and opportunities.
• The launch of an AI private cloud for French customers that want to speed-up the development and deployment of enterprise AI solutions in a secure environment. Kyndryl's suite of AI private cloud services and consulting expertise are designed to deliver a seamless, end-to-end experience for enterprise-grade AI solutions – from design and rapid development to full operation.
• A new digital hub dedicated to AI & cybersecurity in Sophia-Antipolis bringing global expertise to partner and innovate with organizations in France. In partnership with graduate schools and research centers, the digital hub will also welcome students and provide career opportunities in the areas of AI and cybersecurity.

In recent research, Kyndryl cited that only 28% of French business leaders say their workforces are completely ready to take advantage of AI, and half (50%) report there is a lack of skilled talent to manage the technology. Today's announcement demonstrates Kyndryl's commitment to build the critical skills, talent and IT infrastructure needed to advance France's technology agenda.

About Kyndryl
Kyndryl (NYSE: KD) Kyndryl is a leading provider of mission-critical enterprise technology services offering advisory, implementation and managed service capabilities to thousands of customers in more than 60 countries. As the world's largest IT infrastructure services provider, the Company designs, builds, manages and modernizes the complex information systems that the world depends on every day. For more information, visit www.kyndryl.com.

Kyndryl Press Contact
press@kyndryl.com

Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements often contain words such as "aim," "anticipate," "believe," "contemplate," "could," "estimate," "expect," "forecast," "intend," "may," "objectives," "opportunity," "plan," "position," "predict," "project," "should," "seek," "target," "will," "would" and other similar words or expressions or the negative thereof or other variations thereon. All statements other than statements of historical fact, including without limitation statements concerning the Company's plans, objectives, goals, beliefs, business strategies, future events, business condition, results of operations, financial position, business outlook and business trends and other non-historical statements, are forward-looking statements. These statements do not guarantee future performance and speak only as of the date of this press release. Except as required by law, the Company assumes no obligations to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Actual outcomes or results may differ materially from those suggested by forward-looking statements as a result of risks and uncertainties including those described in the "Risk Factors" section of the Company's most recent Annual Report on Form 10-K, and may be further updated from time to time in the Company's subsequent filings with the Securities and Exchange Commission.

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SOURCE Kyndryl

FAQ

What is Kyndryl's (KD) investment plan in France for 2025?

Kyndryl is investing €100 million over three years in France, focusing on hiring 300 experts, launching an AI private cloud service, and establishing a digital hub in Sophia-Antipolis.

How many jobs will Kyndryl (KD) create in France through this investment?

Kyndryl plans to hire up to 300 experts and leaders in data, AI, and cyber resilience in France.

What percentage of French businesses are ready for AI according to Kyndryl's research?

According to Kyndryl's research, only 28% of French business leaders say their workforces are completely ready to take advantage of AI.

Where will Kyndryl's new digital hub be located in France?

Kyndryl's new digital hub focused on AI & cybersecurity will be located in Sophia-Antipolis, France.

What services will Kyndryl's AI private cloud offer in France?

Kyndryl's AI private cloud will provide end-to-end enterprise AI solutions, including design, rapid development, and full operation services in a secure environment.