Ignite, which sees developers, IT professionals and partners come together to hear about the tech giant's product updates and new creations, will take place at Moscone Center in SoMa on November 17.
Incoming Mayor Daniel Lurie celebrated the announcement, which was made at the final day of the Chicago-based conference on November 22, and said it is an "important step" to boosting the city's tourism.
He said: "I'm thrilled to see Microsoft bringing Ignite to San Francisco in 2025 — an important step toward filling our hotels, bars, and restaurants and generating the tax revenue needed to deliver the world-class services that San Franciscans deserve."
According to San Francisco Travel, the high-profile technology event is "forecasted to generate $41.5 million in direct spending and account for 61,510 hotel rooms".
This year's conference saw 80 new products and features be announced, including updates in the firm's artificial intelligence (AI) work assistant Microsoft Copilot.
Takeshi Numoto, EVP and Chief Marketing Officer at Microsoft, said: "2024 was a tremendous year for growth and AI innovation here at Microsoft.
"We are excited to grow Microsoft Ignite in San Francisco in 2025."