Microsoft has unveiled plans to allocate approximately $80 billion (around Rs. 6,86,200 crore) in fiscal year 2025 to expand its data centre infrastructure, according to a report by Reuters. This massive investment is aimed at supporting the training of advanced artificial intelligence (AI) models and the deployment of AI-driven and cloud-based applications, as detailed in the company's recent blog post.
The surge in AI-focused spending reflects the growing integration of AI technologies across various products and services, a trend that gained momentum following the launch of OpenAI’s ChatGPT in 2022. The development of sophisticated AI models requires significant computational power, necessitating the construction of specialised data centres designed to interconnect thousands of advanced chips in large-scale clusters.
Microsoft’s commitment to enhancing its AI infrastructure and expanding its global data-center network is evident from market analysts’ estimates. The company’s total capital expenditures, including capital leases, for fiscal 2025 are projected to reach approximately $84.24 billion (roughly Rs 7,20,475 crore), according to data from Visible Alpha, as reported by Reuters. Notably, in the first quarter of fiscal 2025 alone, Microsoft’s capital expenditure rose by 5.3 per cent, reaching $20 billion (about Rs 1,71,541 crore).
As the primary supporter of OpenAI, Microsoft is seen as a leader in the competitive AI landscape, thanks to its exclusive partnership with the creator of the AI chatbot. Vice Chair and President Brad Smith highlighted that over 50 per cent of the planned $80 billion investment will focus on projects within the United States. 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," as reported by Reuters.
This strategic expansion underscores Microsoft’s dedication to maintaining its position at the forefront of AI and cloud computing innovation.
