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

Microsoft plans to spend $80 billion in fiscal 2025 on the construction of data centers that can handle artificial intelligence workloads, the company said in a Friday blog post.

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.

The tech giant will funnel more than half of the investments into U.S.-based facilities, Microsoft Vice Chair and President Brad Smith said Friday.

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 will spend $3 billion to expand its Azure cloud and artificial intelligence (AI) capacity in India, CEO Satya Nadella said on Tuesday, doubling down on a country with tech expertise and low costs to help turn such investments profitable.