Microsoft spends $80 billion in FY25 on AI data centers

Microsoft has allocated $80 billion in fiscal year 2025 to build data centers designed to handle artificial intelligence workloads, according to Microsoft. Blog post.

Specifically, the tech giant plans to build AI-enabled data centers “to train AI models and deploy AI and cloud-based applications worldwide.” Of this $80 billion allocated, more than half will be spent in the United States, according to Microsoft Vice President and President Brad Smith. The tech giant’s 2025 fiscal year ends in June.

“As we look to the future, it is clear that AI is poised to become a world-changing GPT. AI promises to drive innovation and enhance productivity in every sector of the economy,” Smith wrote. “The United States is ready to stand at the forefront of this new technological wave.” “Especially if it doubles its strengths and establishes effective partnerships at the international level.”

It was Microsoft and OpenAI It is said in conversations in April regarding the construction of a data center containing an artificial intelligence supercomputer called Stargate. The cost of building the facility was estimated at more than $100 billion. It is worth noting that later in the year, Microsoft Describing a startup as a “competitor” For the first time in SEC filing.

AI’s insatiable thirst for Electricity is expected to rise In the coming years, which may lead to power shortages in data centers.