Microsoft is investing heavily in artificial intelligence (AI) by spending up to $80 billion this fiscal year on building out data centers, the company’s president wrote in a blog post. The majority of the funding will be allocated to the US market, with more than half of the projected spending taking place through June 2025.
The growth of AI is largely attributed to significant investments in infrastructure, which serve as the foundation for innovation and use, according to Microsoft President Brad Smith. Cloud infrastructure providers like Microsoft and Amazon have been competing to expand computing capacity by constructing new data centers.
The previous fiscal year saw Microsoft spend over $50 billion on capital expenditures, primarily focused on server farm construction driven by demand for AI services. The company has expressed concerns about “heavy-handed regulations” related to AI, urging the incoming administration to prioritize a pragmatic export control policy that balances security with rapid expansion and reliable supply chains.
Much of the data center spending is directed towards high-powered chips from companies like Nvidia and Dell Technologies. Microsoft’s efforts also involve energy-efficient solutions, including striking a deal to reopen a reactor at the Three Mile Island nuclear power plant in Pennsylvania.
Source: https://finance.yahoo.com/news/microsoft-spend-80-billion-ai-191302185.html