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All issuesVolume 322, Issue 5IT NewsOperations

How AI, Energy Requirements Are Shaping Data Center Investment

InformationWeek, Friday, January 31st, 2025

As Microsoft invests $80 billion to build out AI-powered data centers, tech companies face energy challenges in the cost of AI infrastructure.

Earlier this month, Microsoft announced it would invest about $80 billion in data centers powered by AI. As part of its 'golden opportunity for American AI,' the company will train AI models and roll out AI and cloud-based applications with this investment.

'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,' wrote Brad Smith, vice chair and president of Microsoft, in a Jan. 3 blog post. 'More than half of this total investment will be in the United States, reflecting our commitment to this country and our confidence in the American economy.'

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