Over half of the investment is reserved for infrastructure. Microsoft President Brad Smith frames AI investment as key to economic growth.

Microsoft says it plans to spend $80 billion on building AI data centers in the 2025 financial year, a significant increase on last year.

Microsoft Corp. has revealed plans to invest more than $80 billion in the construction of data centers for artificial intelligence workloads during its current fiscal year, part of an effort to cement its status as a leader in the fast-growing industry.

While Microsoft is thinking on a global scale, the company's Vice Chair and President said more than half of this total investment will be in the US

Microsoft is one of the biggest spenders, followed closely by Google and AWS, Bloomberg Intelligence said. Its estimate of Microsoft’s capital spending on AI, at $62.4 billion for calendar 2025, is lower than Smith’s claim that the company will invest $80 billion in the fiscal year to June 30, 2025.

The software giant's president, Brad Smith, said Friday in a blog post that more than half of the $80 billion would be spent in the U.S.

Microsoft Corp. plans to spend $80 billion this fiscal year building out data centers, underscoring the intense capital requirements of artificial intelligence.

Microsoft is planning to invest about $80 billion in fiscal 2025 on developing data centers to train artificial intelligence (AI) models and deploy AI and cloud-based applications, the company said in a blog post on Friday.

Amid growing investments in India's AI sector, Microsoft has announced plans to invest US$3 billion in the country. This substantial investment aims to enhance AI capabilities and expand the reach of Azure services across India.

The massive sum will go towards building out datacenters for training AI models, as well as deploying and improving global AI and cloud-based applications.