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Microsoft to invest $80 Billion in AI-powered data centers by 2025

Microsoft plans to invest approximately $80 billion in AI-powered data centers by 2025, with over half of the investment allocated to the U.S. This move aims to strengthen the U.S.'s leadership in global AI innovation and secure economic growth.

Agencies and A News TECH
Published January 06,2025
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American tech company Microsoft announced plans to invest around $80 billion in AI-powered data centers in the 2025 fiscal year.

Brad Smith, Vice Chairman and President of Microsoft, wrote in a blog titled "A Golden Opportunity for American AI" that AI is the electricity of this era, and the next four years could lay the foundation for America's economic success over the next quarter-century.

Smith emphasized that AI promises to drive innovation and increase productivity across all sectors of the economy. He noted that if the U.S. leverages its strengths and forms effective international partnerships, it is poised to be at the forefront of this new wave of technology.

OVER HALF OF THE INVESTMENT WILL BE MADE IN THE U.S.

Smith pointed out that thanks to private equity investments and American corporate innovation, the U.S. is leading the global AI race. He shared that Microsoft plans to invest approximately $80 billion in the 2025 fiscal year to build AI-powered data centers aimed at training AI models and using AI-driven cloud-based applications worldwide.

He noted that more than half of this investment would be made in the U.S., reflecting Microsoft's commitment to the country and confidence in the American economy.

Smith stressed that the U.S.'s top public policy priority should be to ensure the private sector continues to thrive, with its momentum driven forward, without being hindered by excessive regulation.

He further emphasized the need for a pragmatic export policy that ensures the security of AI components while enabling companies to grow and offer reliable supply chains to allied countries.