Microsoft is investing $80 billion in data centers for AI workloads, benefiting from AI boom.

From Nasdaq: 2025-01-06 13:00:00

Microsoft plans to invest $80 billion in constructing data centers for AI workloads by fiscal 2025, with over half of the spending in the U.S. The company collaborates with OpenAI and incorporates AI into products like Windows and Teams, benefiting from the AI boom and increasing competition among tech giants.

In fiscal 2025, Microsoft reported $20 billion in global capital expenditures, with $14.9 billion allocated to property and equipment. Analysts project $63.2 billion in additions to property and equipment for the year, with Azure and cloud services revenue growing by 33% in the first quarter, driven by AI services.

ETFs with high exposure to Microsoft, like MSFX, IXN, IYW, VGT, and FTEC, are in focus following Microsoft’s AI data center investment plans. Microsoft’s AI business is expected to bring in over $10 billion in sales annually, with the company investing billions in expanding its global data center network for AI technology development.

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Read more at Nasdaq: Microsoft Unveils $80B AI Data Center Plans: ETFs in Focus