Microsoft has announced plans to invest approximately $80 billion in AI-enabled data centers during its fiscal year 2025, which runs from July 2024 to June 2025.

This substantial investment aims to expand the company’s infrastructure to support the growing demand for AI and cloud-based applications.

Notably, more than half of this expenditure is allocated for projects within the United States.

The surge in AI technologies, particularly following the launch of OpenAI’s ChatGPT in 2022, has led to increased integration of AI into various products and services.

This trend necessitates significant computing power, prompting Microsoft to enhance its data center capabilities to train AI models and deploy AI-driven applications effectively.

In the first quarter of fiscal 2025, Microsoft’s capital expenditures rose by 5.3% to $20 billion, reflecting the company’s commitment to scaling its infrastructure to meet AI demands.

Analysts project that Microsoft’s total capital expenditure for fiscal 2025 will be around $84.24 billion.

Microsoft’s Vice Chair and President, Brad Smith, emphasized the pivotal role of the United States in the global AI sector, citing collaborations between tech companies, chip suppliers, and software developers.

He also called for increased government support for AI research and the development of a national talent strategy to prepare the workforce for this technological era.

This investment underscores Microsoft’s strategic focus on AI and its infrastructure, positioning the company to better serve the escalating needs of AI and cloud services worldwide.