Microsoft plans to invest $80 billion in AI data centers, urging increased funding for AI research and a national talent strategy.

Brad Smith, the Microsoft Vice Chair and President, has revealed how the technology giant plans to move forward with its support for AI technology. The announcement comes as global investment in AI infrastructure is expected to reach $300 billion by 2026.

Microsoft Corp. has revealed plans to invest more than $80 billion in the construction of data centers for artificial intelligence workloads during its current fiscal year, part of an effort to cement its status as a leader in the fast-growing industry.

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.

Microsoft is investing $80 billion in 2025 to build AI-focused data centers, with most of the spending in the U.S. Vice Chair Brad Smith said the U.S. leads the global AI race because of private investments and innovation and urged quick action to stay ahead of growing competition from China.

Microsoft will spend $3 billion to expand its Azure cloud and artificial intelligence (AI) capacity in India, CEO Satya Nadella said on Tuesday, doubling down on a country with tech expertise and low costs to help turn such investments profitable.

Microsoft Corp. plans to spend $3 billion to expand its cloud computing and artificial intelligence capabilities in India, targeting the world’s most populous country to fuel its revenue growth.