Microsoft plans to invest nearly $100 billion in AI-enabled data centers in fiscal 2025

Microsoft announced plans to allocate nearly $100 billion toward developing AI-enabled data centers in fiscal year 2025, marking one of the company’s largest investments in artificial intelligence infrastructure to date.

Brad Smith, Microsoft’s vice chair and president, disclosed the details in a blog post on Friday, emphasizing the transformative potential of AI across industries.

“In FY 2025, Microsoft is on track to invest approximately $80 billion to build out AI-enabled datacenters to train AI models and deploy AI and cloud-based applications around the world,” Smith wrote.

The investment underscores Microsoft’s commitment to advancing AI technologies globally while maintaining its leadership in the competitive AI race.

Smith highlighted that artificial intelligence has the potential to drive innovation and productivity in every economic sector, with the United States uniquely positioned to lead the charge.

“Today, the United States leads the global AI race thanks to the investment of private capital and innovations by American companies of all sizes, from dynamic start-ups to well-established enterprises,” Smith stated.

He pointed to Microsoft’s collaborations with OpenAI, emerging firms like Anthropic and xAI, and the company’s own AI-enabled platforms as examples of this leadership.

As global interest in AI intensifies, Microsoft’s expansive investment signals a broader trend of tech giants pouring resources into AI infrastructure to support advancements in machine learning and cloud-based technologies.

Smith also stressed the importance of international cooperation to maximize AI’s potential, positioning the U.S. as a central player in shaping the future of the technology.