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 an AI-enabled data center “to train AI models and deploy AI and cloud-based applications around the world.” Of the $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 to the future, it’s clear that artificial intelligence is poised to be a world-changing GPT. AI promises to drive innovation and improve productivity in every sector of the economy,” Smith wrote. “The United States is poised to stand at the forefront of this new wave of technology, especially as it increases its strength and effectively becomes an international partner.” Microsoft and OpenAI reported in April the construction of a data center facility that will house an AI supercomputer called Stargate. The facility is estimated to cost more than $100 billion to build. Notably, at the end of the year, Microsoft referred to the startup as a “competitor” for the first time in an SEC filing. AI’s unquenchable thirst for electricity is expected to increase in the coming years, which could lead to power shortages for data centers.
