Tech Desk 
Jan 04, 2025
Microsoft intends to invest about $80bn (approximately INR 6,86,200 crore) in fiscal 2025 in developing data centres to train artificial intelligence (AI) models and implement AI-centric and cloud-based applications.
Investment in AI has surged since OpenAI launched ChatGPT in 2022, as companies across sectors seek to add artificial intelligence into their products and services.
AI needs huge computing power, pushing demand for specialised data centres, which enable tech companies to link thousands of chips together in clusters.
Notably, Microsoft has been investing billions to improve its AI infrastructure and expand its data centre network.
According to Visible Alpha, analysts expect Microsoft's fiscal 2025 capital expenditure including capital leases to be $84.24 billion (approximately INR 7,20,475 crore).
The company's capital expenditure in the first quarter of fiscal 2025 rose 5.3% to $20 billion (approximately INR 1,71,541 crore).
Microsoft's US investment plans
In a blog post, Microsoft Vice Chair and President Brad Smith said that more than half of Microsoft's $80 billion (approximately INR 6,86,200 crore) investment will be in the United States (US).
Smith stated: "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."
