Microsoft to Spend $80 Billion on AI Data Centers in FY25

Microsoft to Spend $80 Billion on AI Data Centers in FY25

Microsoft is making a massive investment in AI, planning to spend nearly $80 billion in fiscal year 2025 on data centers designed to handle artificial intelligence workloads. This move is part of the company's efforts to maintain its lead in the global AI race. The investment will be used to build AI-enabled data centers, with over half of the spending allocated for the United States.

Microsoft's Vice Chair and President, Brad Smith, emphasized the importance of AI in driving innovation and boosting productivity across various sectors. He also highlighted the need for the US to develop a comprehensive national strategy to ensure its leadership in AI.

The company's investment in AI data centers is expected to support the growing demand for computational power required for AI model training and deployment. This move will also enable Microsoft to expand its Azure cloud services, which have seen significant growth, with a 33% year-over-year increase.

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