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Home Feature News

Microsoft to pour $80b in data centers for AI this year

Sinta by Sinta
January 6, 2025
in Feature News, Industry, News
0
Illustration of data centers for AI development. Credit: Microsoft

Illustration of data centers for AI development. Credit: Microsoft

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Heaptalk, Jakarta — Microsoft announced its plan to spend $80 billion in fiscal 2025 establishing data centers for AI development. The development will include training AI models and deploying AI and cloud-based applications worldwide. More than half of this total investment will be allocated to the United States, aiming to boost the country’s economy.

“As we look into the future, it’s clear that artificial intelligence is poised to become a world-changing GPT. AI promises to drive innovation and boost productivity in every sector of the economy. The United States is poised to stand at the forefront of this new technology wave, especially if it doubles down on its strengths and effectively partners internationally,” stated Brad Smith, Vice Chair & President of Microsoft, in an official blog post (01/03).

The company sees that achieving its goal in the AI race depends on a broad and competitive technology ecosystem, much of which is based on open-source development. This includes competitors, chip suppliers, applications companies, systems integrators, service providers, and software developers. Smith added, “Together, all these groups have enabled the technology sector to become an economic backbone for the United States and the world.”

In more detail, the country’s technological strength is rooted in the private sector. The investment of private capital and innovations by American companies of all sizes, from dynamic startups to well-established enterprises, has brought the U.S. to dominate the AI race. Smith admitted that no progress would be possible without new partnerships founded on large-scale infrastructure investments, including in data centers. Hence, this measure is expected to fuel the AI innovation and use.

Tags: data centers for AIMicrosoft

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