Microsoft plans to invest about $80 billion in fiscal 2025 on developing data centers to train artificial intelligence models and deploy cloud-based applications. The company’s investment surge comes as companies across sectors seek to integrate artificial intelligence into their products and services.
The immense computing power required for AI demands specialized data centers that enable tech companies to link thousands of chips together. Microsoft has been investing billions to enhance its AI infrastructure and expand its data-center network.
Analysts expect the company’s fiscal 2025 capital expenditure, including capital leases, to reach $84.24 billion. The first quarter saw a 5.3% increase in capital expenditure to $20 billion.
As OpenAI’s primary backer, Microsoft is considered a leading contender in the AI race due to its exclusive partnership with the AI chatbot maker. Over half of the investment will be allocated to the United States, according to Vice Chair and President Brad Smith.
The US is now at the forefront of the global AI race, driven by private capital investments and innovative efforts from American companies, including Microsoft.
Source: https://edition.cnn.com/2025/01/03/tech/microsoft-ai-data-centers/index.html