Microsoft (MSFT.O) has announced plans to invest approximately $80 billion in fiscal 2025 to expand its data centers aimed at supporting artificial intelligence (AI) models and deploying AI and cloud applications. This move comes as AI investment has skyrocketed since the launch of OpenAI’s ChatGPT in 2022, with companies across various industries integrating AI into their products and services.
As AI technology demands immense computing power, there has been a surge in the need for specialized data centers that connect thousands of chips to form powerful clusters. Microsoft has been heavily investing in expanding its AI infrastructure and data-center network.
In fiscal 2025, analysts predict Microsoft’s capital expenditure, including leases, to reach $84.24 billion, according to Visible Alpha. The company’s capital expenditure in the first quarter of fiscal 2025 has already risen by 5.3% to $20 billion.
As OpenAI’s primary backer, Microsoft is positioned as a key player in the AI race, benefitting from its exclusive partnership with the AI chatbot maker. More than half of Microsoft’s $80 billion investment will be directed towards the United States, with Vice Chair and President Brad Smith emphasizing the country’s leadership in the global AI race driven by private capital and innovations from both startups and established enterprises.
