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Microsoft to spend $80B on AI data centres in the fiscal year 2025

Brad Smith, Vice Chair and President, Microsoft.

Microsoft Vice Chair and President Brad Smith revealed the company is on track to spend approximately $80 billion to build AI-enabled data centres in its current financial year (to end-June 2025), with more than 50% of that investment earmarked for the USA.

Smith explained the tech giant plans to use the data centres “to train AI models and deploy AI and cloud-based applications around the world”.

While Smith welcomed President Donald Trump to his second term in office, he cautioned against “heavy-handed regulations” that could slow down the private sector.

“The most important American public-policy priority should be to ensure that the private sector can continue to advance with the wind at its back. The USA needs a pragmatic export control policy that balances strong security protection for AI components in trusted data centres with an ability for companies to expand rapidly and provide a reliable source of supply to the many countries that are American allies and friends”.

Smith stated the USA is well-positioned to flourish in its development of AI due to solid technology development and an innovative private sector.

“If the Trump Administration can develop a strong national AI talent strategy and use AI to make the government itself more effective and efficient, it will put the country on a promising path. The USA is in a strong position to win the essential race with China by advancing international adoption of American AI. These products are more trusted than their Chinese counterparts, and our private sector is unmatched in its ability to invest in infrastructure around the world”.

Image Credit: Microsoft

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