Microsoft is planning to spend about $80 billion in fiscal 2025 to build data centers to train artificial intelligence (AI) models and deploy AI and cloud-based applications, the company said in a blog post on Friday.

Key Takeaways Microsoft is slated to spend $80 billion on data centers needed to train and run artificial intelligence by the end of the fiscal year, president Brad Smith said Friday in a blog post.More than half of the investment will occur domestically,

Much of the $80B will go towards data centers to be used for artificial intelligence, as AI progress has resulted in the need for “large-scale infrastructure investments that serve as the essential foundation of AI innovation and use,” Microsoft Vice President Brad Smith wrote in the post.

Microsoft announced it would be investing $80 billion of its budget for the fiscal year 2025 on building AI specific data centers.

Microsoft plans to spend $80 billion in fiscal 2025 on the construction of data centers that can handle artificial intelligence workloads, the company said in a Friday blog post.