Over half of the investment is reserved for infrastructure. Microsoft President Brad Smith frames AI investment as key to economic growth.

Microsoft aims to spend $80 billion on AI data centers in first half of 2025 Half of the amount will be destined for the United States Upskilling citizens is recognized as crucial Microsoft has revealed plans to invest $80 billion in AI data centers throughout the first half of 2025.

Many companies and brands have begun shifting to more sustainable practices in recent years. Microsoft has long been leading the charge, pledging to be carbon negative by 2030. And it's now added another tactic in the fight for sustainability: building data centers made of wood and other low-carbon materials.

Microsoft Corp. has revealed plans to invest more than $80 billion in the construction of data centers for artificial intelligence workloads during its current fiscal year, part of an effort to cement its status as a leader in the fast-growing industry.

The tech giant has pledged that all data centers serving its cloud by this year will have power purchase agreements for 100 percent low-carbon energy.

Microsoft Corp. plans to spend $80 billion this fiscal year building out data centers, underscoring the intense capital requirements of artificial intelligence.

The tech giant will funnel more than half of the investments into U.S.-based facilities, Microsoft Vice Chair and President Brad Smith said Friday.

Microsoft is one of the biggest spenders, followed closely by Google and AWS, Bloomberg Intelligence said. Its estimate of Microsoft’s capital spending on AI, at $62.4 billion for calendar 2025, is lower than Smith’s claim that the company will invest $80 billion in the fiscal year to June 30, 2025.

The software giant's president, Brad Smith, said Friday in a blog post that more than half of the $80 billion would be spent in the U.S.

Microsoft will spend $3 billion to expand its Azure cloud and artificial intelligence (AI) capacity in India, CEO Satya Nadella said on Tuesday, doubling down on a country with tech expertise and low costs to help turn such investments profitable.