Microsoft announced plans to invest approximately $80 billion in fiscal 2025 to bolster its data center infrastructure. This significant investment aims to support the training of advanced artificial intelligence (AI) models and the deployment of AI-powered applications and cloud services.
The surge in AI development, particularly following the launch of ChatGPT in 2022, has driven a significant increase in demand for high-performance computing resources. AI models require immense computational power, necessitating specialized data centers capable of connecting thousands of chips together in clusters.
Microsoft has been actively expanding its data center network and investing heavily in AI infrastructure to maintain its competitive edge in the rapidly evolving AI landscape. As a leading backer of OpenAI, Microsoft holds a strong position in the AI race, leveraging its exclusive partnership with the creator of ChatGPT.
Over half of the $80 billion investment will be allocated to the United States. In September last year, Microsoft also announced a joint venture with BlackRock, Global Infrastructure Partners (GIP), and MGX to develop new and expanded data centers and associated energy infrastructure.
They have formed a group named Global AI Infrastructure Investment Partnership (GAIIP) for this purpose, which will initially seek to unlock US$ 30 billion of private equity capital over time from investors, asset owners, and corporates, which in turn will mobilize up to US$ 100 billion in total investment potential when including debt financing.
According to a press release, these infrastructure investments will be chiefly in the United States fueling AI innovation and economic growth, and the remainder will be invested in U.S. partner countries.
Microsoft’s commitment to AI infrastructure extends globally. The company recently announced a €4.3 billion investment in Italy to expand its hyperscale cloud and AI data center footprint within the next two years.
Furthermore, Microsoft has signed a Memorandum of Understanding (MoU) with the Saudi Data and AI Authority (SDAIA) to strengthen collaboration and advance generative AI innovation in Saudi Arabia.