Microsoft to invest $80 billion in AI-focused data centers by 2025

Investing.com -- Microsoft (NASDAQ:MSFT ) has announced plans to invest $80 billion in the construction of data centers that can handle artificial intelligence (AI) workloads by fiscal 2025.

The majority of this investment, over half of the total amount, will be allocated to projects within the United States.

The company's announcement comes amid a surge in technology companies investing heavily in Nvidia (NASDAQ:NVDA )'s graphics processing units.

These units are used for training and running AI models. The AI race among companies was sparked by the rapid spread of OpenAI’s ChatGPT assistant, which was launched in late 2022.

In the first quarter of fiscal 2025, Microsoft reported $20 billion in capital expenditures and assets acquired under finance leases worldwide.

Of this, $14.9 billion was spent on property and equipment. Microsoft's Chief Financial Officer, Amy Hood, stated in October that capital expenditures are expected to increase sequentially in the fiscal second quarter.

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Source: Investing.com