Microsoft has earmarked $80 billion in fiscal 2025 to build data centers designed to handle artificial intelligence workloads, according to a company blog post.
Specifically, the tech giant plans to build AI-enabled data centers “to train AI models and deploy AI and cloud-based applications around the world.” Of that $80 billion allocation, more than half will be spent in the United States, according to Microsoft Vice Chairman and President Brad Smith. The tech giant’s 2025 fiscal year ends in June.
“As we look into the future, it’s clear that artificial intelligence is poised to become a world-changing GPT. AI promises to drive innovation and increase productivity in every sector of the economy,” Smith wrote. “The United States is poised to be at the forefront of this new technological wave, especially if it doubles down on strengths and partners effectively internationally.”
Microsoft and OpenAI were reportedly in talks in April about building a data center that would house an AI supercomputer called Stargate. The construction of the facility is estimated to cost over 100 billion dollars. Notably, later in the year, Microsoft called the startup a “competitor” for the first time in an SEC filing.
AI’s unquenchable thirst for electricity is expected to increase in the coming years, potentially leading to power shortages for data centers.
