Microsoft to Invest USD 80 Billion into Data Center Infrastructure

CIOTechOutlook Team | Monday, 06 January 2025, 02:39 IST

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Microsoft has announced plans to invest about $80 billion (approximately Rs. 6,86,200 crore) in the fiscal year 2025 to enhance its data center infrastructure. This investment is designed to bolster the training of sophisticated artificial intelligence (AI) models and promote the implementation of AI-powered and cloud-based applications, as noted in the company's latest blog entry.

The increase in spending centered on AI indicates the rising need to incorporate AI technologies into different products and services, a trend that notably sped up following the introduction of OpenAI’s ChatGPT in 2022.

The progression of AI demands tremendous computational resources, leading to the necessity for specialized data centers that can connect thousands of advanced chips within extensive clusters. In reaction, Microsoft has been dedicating significant resources to improve its AI infrastructure and broaden its worldwide data-center network.

Market analysts predict that Microsoft’s overall capital expenditures, which also encompass capital leases, for fiscal 2025 will amount to around $84.24 billion (approximately Rs 7,20,475 crore), based on information from Visible Alpha, according to sources.

Significantly, in the initial quarter of fiscal 2025, Microsoft’s capital spending rose by 5.3 percent, totaling $20 billion (approximately Rs 1,71,541 crore), highlighting the firm’s dedication to leading advancements in AI and cloud computing.

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