Microsoft anticipates spending $80 billion to construct AI data centers in fiscal 2025, which ends in June. More than half of that investment will fund U.S. infrastructure, according to company Vice Chair and President Brad Smith. The move aims to keep Microsoft, which owns a stake in OpenAI, a leader in artificial intelligence, and bolster the nation’s position in the global AI race, which Smith says it currently leads, “thanks to the investment of private capital and innovations by American companies of all sizes, from dynamic startups to well-established enterprises.”

Outlining his vision for the next four years in a company blog post titled “The Golden Opportunity for American AI,” Smith writes “AI promises to drive innovation and boost productivity in every sector of the economy,” adding that “the United States is poised to stand at the forefront of this new technology wave, especially if it doubles down on its strengths and effectively partners internationally.”

In remarks coinciding with a new U.S. executive administration, Smith presented a bullish vision for the road ahead, comparing AI to the invention of electricity. “In many ways, artificial intelligence is the electricity of our age, and the next four years can build a foundation for America’s economic success for the next quarter century,” Smith writes.

“Microsoft reported $20 billion in capital expenditures and assets acquired under finance leases worldwide, with $14.9 billion spent on property and equipment, in the first quarter of fiscal 2025,” which includes data center build outs, CNBC reports, noting that analysts were looking for something along the lines of $63.2 billion.

“Capital expenditures will increase sequentially in the fiscal second quarter,” CNBC writes, citing comments made in October by Microsoft CFO Amy Hood. The company is poised to report earnings for fiscal 2025 Q2 at the end of the month.

Microsoft has invested more than $13 billion in OpenAI, per media reports, and Smith’s blog post emphasized maintaining a global leading edge.

“International investment will further Microsoft’s goal of dominating external markets with U.S. AI products, particularly in areas facing competition from China,” explains TechRepublic.

“The rapid development of China’s AI sector has heightened competition between American and Chinese AI, with much of this likely to play out during the next four years in international markets around the world,” according to Smith.

Both the U.S. and China “seek to add AI and cloud data center infrastructure to global infrastructure,” TechRepublic notes, adding that “Microsoft highlighted the United Arab Emirates and Kenya as footholds for the U.S. to which Microsoft provided AI infrastructure and supply line expertise.”