Microsoft Plans to Invest $80 Billion in AI Data Centers This Year
Microsoft is set to invest $80 billion in data centers, focusing on AI infrastructure to meet growing demand and enhance innovation
Microsoft, AI, Data Centers, Pennsylvania, Nvidia, Dell
Redmond: Microsoft is gearing up to spend a whopping $80 billion this fiscal year on building data centers. This move highlights just how much cash is needed for artificial intelligence these days.
According to Microsoft President Brad Smith, over half of this spending will happen in the U.S. He mentioned that the recent advancements in AI are largely due to these big infrastructure investments.
Companies like Microsoft and Amazon are in a race to boost their computing power by setting up new data centers. Last year, Microsoft already shelled out more than $50 billion on similar projects, mainly driven by the demand for AI services.
Smith also had some advice for the incoming Trump administration, urging them to avoid strict regulations on AI. He believes the focus should be on helping the U.S. private sector thrive.
He emphasized the need for a balanced export control policy that protects AI components while allowing U.S. companies to grow and support allied nations.
A big chunk of this data center spending will go towards high-powered chips from firms like Nvidia and infrastructure from Dell. To power these massive AI server farms, Microsoft even made a deal to reopen a reactor at the infamous Three Mile Island nuclear plant in Pennsylvania.
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