Microsoft has announced plans to invest $80 billion in AI-enabled data centers worldwide in 2025, marking a significant move to strengthen its leadership in artificial intelligence (AI) and cloud computing. The announcement was made by Brad Smith, the company’s vice-chairman and president, in a blog post on (January 3).
The investment will focus on advancing the global development and deployment of cutting-edge AI models and cloud-based applications. According to Smith, more than half of the allocated funds will be directed to projects within the United States.
“In FY 2025, Microsoft is on track to invest approximately $80 billion to build out AI-enabled data centers to train AI models and deploy AI and cloud-based applications around the world,” Smith said.
This initiative follows Microsoft’s 2024 commitment to invest $35 billion over three years in AI and cloud data centers across 14 countries. The targeted regions include areas influenced by China’s Belt and Road Initiative, a global infrastructure strategy aimed at connecting Asia with Africa and Europe.
Smith expressed concerns about China’s AI strategy, which mirrors its telecommunications dominance achieved through government subsidies. He noted that China’s subsidized access to critical technologies, such as chips and AI infrastructure, could have far-reaching implications for the global AI ecosystem.
To counter China’s influence, Smith emphasized Microsoft’s focus on trust, privacy, and security in AI technology. He highlighted the company’s commitment to creating AI systems that prioritize cybersecurity, digital safety, and responsible practices.
“Many U.S. companies, including Microsoft, have invested heavily in building AI that is more trustworthy than most products from China,” Smith said.
He further noted that while the Chinese government heavily invests public funds to promote its technologies globally—particularly in Africa, Asia, and Latin America—it would be challenging for China to rival the scale of private sector investments and international capital from the United States.
Smith’s statements underline Microsoft’s ambition to lead the global AI race while addressing the geopolitical and ethical challenges posed by competing AI ecosystems.
 

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