Microsoft Plans to Invest $80 Billion in Fiscal 2025 in Data Centers for AI Training
Microsoft is set to invest around $80 billion in fiscal 2025 on developing data centers to train artificial intelligence (AI) models and deploy AI and cloud-based applications. This move comes as demand for AI-enabled products and services surges following the launch of OpenAI’s ChatGPT in 2022. To support this increased demand, companies are looking for specialized data centers that can enable thousands of chips to be linked together in clusters.
The investment will focus on enhancing Microsoft’s AI infrastructure and expanding its data-center network. Analysts predict that Microsoft’s fiscal 2025 capital expenditure, including capital leases, will reach $84.24 billion. In the first quarter of fiscal 2025, the company’s capital expenditure rose 5.3% to $20 billion.
Vice Chair and President Brad Smith revealed that over half of the investment will be in the United States. He believes that the US is leading the global AI race due to private capital investments and innovations from companies of all sizes.
Microsoft is considered a leading contender among Big Tech companies in the AI race due to its exclusive partnership with OpenAI. The partnership gives the tech giant a unique position in the development and deployment of AI-enabled applications.