Microsoft Plans $80 Billion Investment in Data Centers for AI Expansion in Fiscal 2025

According to a blog post from the company, Microsoft plans to spend around $80 billion in fiscal 2025 building data centers to train artificial intelligence (AI) models and putting AI and cloud-based apps to use. Businesses in all kinds of fields are racing to add AI to their goods and services, and this big investment shows how much demand there is for AI infrastructure.

Since OpenAI's ChatGPT came out in 2022, there has been a lot of progress in AI, which has increased the need for specialized data centers. By linking thousands of chips together in clusters, these centers provide the huge amounts of computer power needed to train advanced AI models. Microsoft is becoming a bigger player in this field, so it is improving its AI infrastructure and adding more data centers to keep up with the demand.

Analysts think that Microsoft will spend a total of $84.24 billion on capital items in fiscal 2025. This includes capital loans. The company invested $20 billion more in the first quarter of fiscal year 2025, which is 5.3% more than the same time last year. With its exclusive relationship with OpenAI, Microsoft is seen as a leader in the AI race because it is the main backer of the AI chatbot maker.

An important part of Microsoft's investment—more than half—will go to the United States. Brad Smith, Vice Chair and President of Microsoft, says that this move shows that the United States is still the winner in the global race for AI. This race is being powered by private capital investments and new ideas from both start-ups and large companies.

Source : Reuters.com