Microsoft plans to spend $80 billion on AI-enabled data centers in fiscal 2025

Microsoft is planning to spend about $80 billion in fiscal 2025 to build data centers to train artificial intelligence (AI) models and deploy AI and cloud-based applications, the company said in a blog post on Friday.

More than half of the total investment will be in the United States, Microsoft Vice Chair and President Brad Smith said in the blog post.

"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," Smith said.

The tech giant's capital expenditure rose 5.3% to $20 billion in the first quarter of fiscal 2025.