Microsoft Is Reportedly Planning To Invest $80 Billion In FY 2025 On AI-Enabled Data Centres

The development of AI requires immense computational power, driving the need for specialised data centres capable of interconnecting thousands of advanced chips in large-scale clusters.

Microsoft has announced plans to allocate approximately $80 billion (around Rs. 6,86,200 crore) in fiscal year 2025 to expand its data centre infrastructure, Reuters reported. This investment aims to support the training of advanced artificial intelligence (AI) models and facilitate the deployment of AI-driven and cloud-based applications, as highlighted in the company's recent blog post.

The surge in AI-focused spending reflects the growing demand for integrating AI technologies into various products and services, a trend that accelerated significantly after the launch of OpenAI’s ChatGPT in 2022.

The development of AI requires immense computational power, driving the need for specialised data centres capable of interconnecting thousands of advanced chips in large-scale clusters. In response, Microsoft has been committing substantial resources to enhance its AI infrastructure and extend its global data-center network. Market analysts estimate that Microsoft’s total capital expenditures, including capital leases, for fiscal 2025 will reach approximately $84.24 billion (roughly Rs 7,20,475 crore), according to data from Visible Alpha, reported Reuters.

Notably, in the first quarter of fiscal 2025 alone, Microsoft’s capital expenditure increased by 5.3 per cent, reaching $20 billion (about Rs 1,71,541 crore), underscoring the company’s commitment to staying at the forefront of AI and cloud computing innovation.

As the main supporter of OpenAI, Microsoft is viewed as a frontrunner in the competitive AI landscape among major tech companies, thanks to its exclusive collaboration with the creator of the AI chatbot. According to Vice Chair and President Brad Smith, over 50 per cent of Microsoft’s planned $80 billion (approximately Rs 6,86,200 crore) investment will be directed toward projects within the United States, as highlighted in the company’s blog post.

Smith said, "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," as reported by Reuters.