Microsoft pledges $80billion in AI Data Centres globally

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Tech giant Microsoft has announced plans to invest approximately $80 billion in AI-enabled data centres globally by the end of fiscal year 2025, with more than half of the funds earmarked for the United States.

Microsoft Vice Chair and President Brad Smith disclosed the initiative in a blog post on Friday, emphasising the company’s confidence in the US economy and its role in advancing technological capabilities.

“In FY 2025, Microsoft is on track to invest approximately $80bn to build out AI-enabled data centres to train AI models and deploy AI and cloud-based applications globally. More than half of this total investment will be in the United States, reflecting our commitment to this country and our confidence in the American economy,” Smith wrote.

Smith highlighted the importance of robust infrastructure in fostering artificial intelligence innovation and ensuring its adoption across industries.

“None of this progress would be possible without new partnerships founded on large-scale infrastructure investments that serve as the essential foundation of AI innovation and use,” he added.

The executive laid out a three-part vision for American AI leadership:

  1. Investment in leading-edge technology and infrastructure: Microsoft aims to advance AI capabilities and expand data centre capacity.
  2. Skilling programmes: These initiatives will promote AI adoption and create new career opportunities.
  3. Exporting American AI innovations: This strategy seeks to enhance the domestic economy while extending the benefits of AI to allied nations.

Smith described AI as a transformative technology, stating:
“AI promises to drive innovation and boost productivity in every sector of the economy. The United States is poised to lead this technological wave, especially if it capitalises on its strengths and forges effective international partnerships.”

Microsoft’s partnerships with firms like OpenAI, Anthropic, and xAI were cited as examples of collaborative efforts propelling AI advancements.

The $80bn investment will support the training of advanced AI models, the development of AI-optimised chips, and the deployment of AI-powered applications worldwide.

“Across the nation, a new generation of AI firms is emerging, capitalising on rapid advances in AI models and chips,” Smith noted.
“And across the economy, software programmes are being redesigned to operate as AI-enabled applications.”

This initiative reaffirms Microsoft’s position as a leader in AI innovation, bolstering its global infrastructure and influence.