Microsoft has earmarked $80 billion in fiscal year 2025 to build data centers designed to handle artificial intelligence workloads, according to a company blog post.
Specifically, the tech giant plans to build AI-enabled data centers to “train AI models and deploy AI and cloud-based applications around the world.” More than half of that $80 billion allocation will be spent in the United States, according to Microsoft Vice Chairman and President Brad Smith. The tech giant's 2025 fiscal year ends in June.
“As we look to the future, it is clear that artificial intelligence is poised to become the GPT that changes the world. AI promises to drive innovation and increase productivity in every sector of the economy.” Smith he wrote. “The United States is poised to be at the forefront of this new technology wave, especially if we can build on our strengths and partner effectively internationally.”
Microsoft and OpenAI were reportedly in talks in April to build a data center facility to house an AI supercomputer called Stargate. Construction of this facility is estimated to cost more than $100 billion. Notably, Microsoft referred to the startup as a “competitor” for the first time in an SEC filing later this year.
AI's insatiable thirst for power is expected to skyrocket in the coming years, potentially leading to data center power shortages.