Over half of the investment is reserved for infrastructure. Microsoft President Brad Smith frames AI investment as key to economic growth.

The tech giant has pledged that all data centers serving its cloud by this year will have power purchase agreements for 100 percent low-carbon energy.

The planned spending represents a 44% increase from last year, and more than half of it is expected to come in the U.S.

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.

The massive sum will go towards building out datacenters for training AI models, as well as deploying and improving global AI and cloud-based applications.

With those whopping returns who could argue with the premis... oh wait The AI datacenter spending splurge looks likely to continue in 2025, with Microsoft alone saying it will invest $80 billion this year on building out infrastructure to train and deploy AI models.