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

Microsoft says it plans to spend $80 billion on building AI data centers in the 2025 financial year, a significant increase on last year.

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.

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.

The planned spending represents a 44% increase from last year, and more than half of it is expected to come in the U.S.

Microsoft said Friday it would spend $80 billion to built out AI-enabled data centers in the fiscal year that ends in June.

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.