The company’s capital expenditure in the first quarter of fiscal 2025 rose 5.3% to $20bn. Credit: katuSka/Shutterstock.

Tech giant Microsoft is set to invest approximately $80bn to expand its artificial intelligence (AI)-enabled data centres by fiscal year 2025.  

These centres will train AI models and deploy AI and cloud-based applications worldwide.

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More than half of this investment will occur in the US, the company said in its blog post.

Investment in AI is said to have surged since OpenAI launched ChatGPT in 2022, as companies across sectors seek to integrate AI into their products and services.

AI requires enormous computing power, pushing demand for specialised data centres that enable tech companies to link thousands of chips together in clusters.

Microsoft has been investing billions of dollars to enhance its AI infrastructure and broaden its data centre network.

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The company’s capital expenditure in the first quarter of fiscal 2025 rose 5.3% to $20bn.

As OpenAI’s primary backer, the tech giant is considered a leading contender among Big Tech companies in the AI race due to its exclusive partnership with the AI chatbot maker.

Microsoft vice-chair and president Brad Smith said: “America’s technological strength has always been rooted in the private sector.

“Today, the US leads the global AI race thanks to the investment of private capital and innovations by American companies of all sizes, from dynamic start-ups to well-established enterprises.”

The latest development comes after Microsoft announced plans to integrate internal and third-party AI models into its flagship AI offering, Microsoft 365 Copilot.

In December 2024, Meta announced plans to invest $10bn in constructing an AI data centre in Richland Parish, Louisiana.