Microsoft to invest $80b in AI data centres by 2025
Joy Agwunobi
Microsoft Corporation, a leading technology firm, has announced plans to invest nearly $80 billion in AI-driven data centres globally by the close of fiscal 2025, with over half of this funding will be directed toward projects in the United States.
Brad Smith, Microsoft’s vice chair and president, shared these details recently, emphasising the critical importance of infrastructure in driving artificial intelligence innovation.
“In FY 2025, Microsoft is set to allocate approximately $80 billion to the development of AI-enabled data centres. These facilities will be instrumental in training AI models and deploying AI and cloud-based applications across the globe. More than half of this investment will support initiatives within the United States, underscoring our dedication to this country and our belief in its economic potential,” Smith explained.
He further underscored the necessity of large-scale infrastructure partnerships in fostering AI development and adoption. “This progress hinges on new partnerships built on substantial infrastructure investments, which form the backbone of AI innovation and its practical applications,” he added.
Smith outlined a three-pronged strategy for ensuring America’s leadership in AI technology. The first element centres on advancements in cutting-edge AI infrastructure and technology.
“At Microsoft, our vision for America’s technological success begins with investments in world-leading AI technology and infrastructure,” Smith stated.
The second aspect of this vision involves comprehensive skilling programs designed to accelerate AI adoption across industries while expanding job opportunities. Lastly, the company plans to focus on exporting American AI innovations to allied nations, thereby strengthening the domestic economy and sharing the benefits of technological advancements on a global scale.
Describing AI as a transformative force, Smith expressed optimism about its potential to reshape industries and enhance productivity. “AI has the power to drive innovation and increase productivity in every economic sector. With its strong foundation and international partnerships, the United States is well-positioned to lead this technological wave,” he said.
Smith also highlighted the role of private-sector ingenuity and investment in establishing the U.S. as a global leader in AI. He pointed to Microsoft’s strategic collaborations with companies like OpenAI, Anthropic, and xAI as examples of dynamic partnerships fueling innovation.
The company’s planned $80 billion investment is aimed at bolstering advancements in AI models, chips, and applications. These investments will not only enable the development of sophisticated AI technologies but also facilitate their deployment across various industries worldwide.
“A new generation of AI firms is emerging across the nation, leveraging rapid advancements in AI models and chips,” Smith noted, adding “Software programs are being reimagined and redesigned to function as AI-enabled applications, driving progress across the economy.”