Microsoft plans to spend a staggering US$84 billion on artificial intelligence (AI)-enabled data centres during the 2025 fiscal year, as it looks to keep on top of projected demand and keep the United States at the forefront of cloud computing and AI development.
More than half of the investment will be plunged directly into U.S.-based data centre upgrades, performance computing, networks, and the deployment of next generation chipsets to power AI algorithms for upcoming cutting edge technologies.
Maintaining America’s competitive edge
"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," Microsoft vice chair and president Brad Smith said in an official blog post.
Yet Smith points to increasing market competition with China as a primary reason for the increase in its FY25 investment into AI.
“China is starting to offer developing countries subsidised access to scarce chips, and it’s promising to build local AI datacenters,” Smith noted.
“The Chinese wisely recognise that if a country standardises on China’s AI platform, it likely will continue to rely on that platform in the future.
“The best response for the United States is not to complain about the competition but to ensure we win the race ahead.
“This will require that we move quickly and effectively to promote American AI as a superior alternative. And it will need the involvement and support of American allies and friends.”
Microsoft is OpenAI’s biggest backer - the company behind the groundbreaking AI chatbot ChatGPT and joins otherr U.S. tech giants Amazon and Google in spearheading the West's AI innovations.