In Fiscal 2025, Microsoft will invest $80 billion in data centers for cloud and artificial intelligence development

During fiscal 2025, Microsoft plans to spend over $80 billion on building data centers to deploy cloud-based apps and train AI models, the firm announced.

Microsoft announced in a blog post on Friday that it will spend over $80 billion in fiscal 2025 on building data centers to deliver cloud-based apps and train AI models.

As businesses from a variety of industries want to incorporate artificial intelligence into their goods and services, investment in AI has increased dramatically since OpenAI introduced ChatGPT in 2022.

The need for specialized data centers that allow IT companies to connect thousands of processors in clusters is fueled by AI’s high processing power requirements.

Microsoft has been spending billions of dollars expanding its data-center network and improving its AI infrastructure.

Visible Alpha reports that analysts project Microsoft’s capital expenditures, including capital leases, will total $84.24 billion in fiscal 2025.

In fiscal 2025, the company’s capital expenditures increased 5.3% to $20 billion in the first quarter.

As the main supporter of OpenAI, the IT behemoth is seen as a front-runner among Big IT firms in the AI race because of its exclusive collaboration with the AI chatbot developer.

President and Vice Chair Brad Smith stated in the blog post that the United States will get more than half of Microsoft’s $80 billion investment.

According to Smith, “private capital investments and innovations by American companies of all sizes, from dynamic start-ups to well-established enterprises, have placed the United States at the forefront of the global AI race today.”