Microsoft plans to invest 80 billion USD in building Datacenters this fiscal year, highlighting the immense demand for capital driven by AI.
Microsoft President Brad Smith wrote in a blog on Friday that more than half of this projected expenditure figure, which extends to June 2025, will be spent domestically in the USA. Smith stated that the recent advancements in AI are attributed to "large-scale infrastructure investments, which are crucial for AI innovation and usage."
Cloud infrastructure providers such as Microsoft and Amazon have been competing to expand computing capacity by building new Datacenters. In the previous fiscal year ending June 2024, Microsoft's capital expenditure exceeded 50 billion USD, with the vast majority related to the construction of Server clusters driven by demand for AI services.
Smith also warned the incoming Trump administration against imposing "harsh regulations" on AI. "The most important public policy priority for the USA should be to ensure that the private sector can continue to ride the waves of innovation," he wrote.