Microsoft plans to invest $80 billion during its 2025 fiscal year to expand data centre infrastructure, with a focus on supporting artificial intelligence (AI) applications.
In a statement, Microsoft’s Vice Chair and President, Brad Smith, revealed the company’s intent to enhance its capacity for training AI models and deploying cloud-based applications worldwide.
A portion of the Microsoft Data Centre budget—over half—is set to be spent within the United States, with the fiscal year concluding in June 2025.
Smith noted that AI has the prospects to enhance innovation and productivity across multiple sectors. He pointed out that the United States could maintain a leadership role in this technology-driven shift by leveraging its strengths and facilitating international collaborations.
The initiative comes as competition increases among tech giants to expand their cloud infrastructure. In the past fiscal year, Microsoft’s capital expenditures exceeded $50 billion, primarily directed towards building server farms to meet the surging demand for AI-driven services.
Competitors like Amazon and Google are similarly ramping up their investments in high-capacity data centres.
One project linked to Microsoft is the planned development of an AI supercomputer facility, tentatively named Stargate, which could cost over $100 billion.
While earlier reports revealed collaboration with OpenAI on this venture, Microsoft has since described the organisation as a competitor in recent regulatory filings.
The massive infrastructure required for AI services also brings challenges. The power demands of these data centres are expected to rise greatly, prompting Microsoft to explore alternative energy sources.
The company has reportedly secured an agreement to reopen a nuclear reactor at the Three Mile Island facility in Pennsylvania to meet its energy needs.
