Microsoft’s vice-chairman and president, Brad Smith, has announced that the company plans to invest a whopping $80 billion in artificial intelligence (AI)-enabled data centers worldwide in 2025.
The move is aimed at reinforcing Microsoft’s leadership position in both the artificial intelligence and cloud computing sectors.
In a blog post on January 3, 2025, Smith detailed how this investment will accelerate the global development and deployment of advanced AI models and cloud-based applications, with a substantial portion—more than half—allocated to 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 wrote.
This comes after Microsoft’s previous announcement in 2024, where it outlined plans to invest $35 billion over three years to establish AI and cloud data centers across 14 countries. The investments will particularly target regions affected by China’s Belt and Road Initiative, which seeks to strengthen infrastructure connections between Asia, Africa, and Europe. The Belt and Road Initiative has been a significant driver of China’s global influence, and in 2018, former Nigerian President Muhammadu Buhari signed a cooperation agreement with China to join the initiative.
Smith also took the opportunity to compare China’s growing dominance in the AI sector to its prior success in telecommunications, which was achieved through government subsidies. He expressed concern that China’s subsidized access to critical technologies such as chips and AI infrastructure could disrupt the global AI landscape.
To counterbalance China’s influence, Smith underscored the importance of trust, privacy, and security in Microsoft’s AI technology, positioning the company as a reliable and responsible alternative in the global market.
“We are focused on developing AI systems that prioritize cybersecurity, privacy, digital safety, and responsible AI practices. Many U.S. companies, including Microsoft, have invested heavily in building AI that is more trustworthy than most products from China,” Smith stated.
The vice-chairman also emphasised that while the Chinese government plans to use public funds to support the global adoption of China’s technologies, particularly in Africa, Asia, and Latin America, it will be challenging for China to match the private sector investments and international capital funds poured into AI by companies like Microsoft.
In closing, Smith reaffirmed Microsoft’s commitment to advancing technology that fosters global trust and security, while ensuring that AI development remains both innovative and ethically responsible.