Microsoft announced plans to invest approximately $80 billion in fiscal 2025 to expand its data centers, focusing on training artificial intelligence (AI) models and deploying AI and cloud-based applications, according to a blog post published on Friday.
The surge in AI investments began after OpenAI launched ChatGPT in 2022, as companies across industries seek to incorporate AI into their products and services. AI development requires vast computational resources, driving demand for specialized data centers capable of connecting thousands of chips in clusters.
Microsoft has been allocating billions to strengthen its AI infrastructure and expand its data center network. Analysts project the company’s fiscal 2025 capital expenditure, including capital leases, to reach $84.24 billion, according to Visible Alpha. In the first quarter of fiscal 2025, Microsoft’s capital expenditure rose 5.3% year-over-year to $20 billion.
As the primary backer of OpenAI, Microsoft holds a leading position among major tech companies in the AI race, bolstered by its exclusive partnership with the creator of ChatGPT.
Vice Chair and President Brad Smith noted that over half of the $80 billion investment would be concentrated in the United States. “Today, the United States leads the global AI race thanks to private capital investments and innovations by American companies of all sizes, from dynamic start-ups to well-established enterprises,” Smith stated in the blog post.
