Microsoft to Invest $80 Billion in AI-Powered Data Centers for Fiscal 2025
Microsoft plans to invest around $80 billion (approximately Rs. 6,86,200 crore) in fiscal year 2025 to build data centers aimed at training artificial intelligence (AI) models and supporting AI and cloud-based applications, the company announced in a blog post on Friday.
The surge in AI investment follows the launch of OpenAI’s ChatGPT in 2022, as companies across industries rush to integrate AI into their offerings.
AI’s substantial computing requirements are driving demand for specialized data centers that can link thousands of chips in clusters to process data.
Microsoft has been investing heavily to expand its AI infrastructure and extend its data-center network.
Analysts anticipate that Microsoft’s total capital expenditure, including capital leases, will reach $84.24 billion (roughly Rs. 7,20,475 crore) in fiscal 2025, according to Visible Alpha.
In the first quarter of fiscal 2025, Microsoft’s capital expenditure grew by 5.3%, amounting to $20 billion (approximately Rs. 1,71,541 crore).
More than half of Microsoft’s $80 billion investment will be directed toward the United States, as noted by Vice Chair and President Brad Smith in the blog post.
“Today, the United States leads the global AI race due to the investment of private capital and innovations by American companies of all sizes, from dynamic start-ups to established enterprises,” Smith remarked.
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