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Released January 08, 2025 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--A few aspects of the computing sector have become increasingly apparent in recent times. One trait is the rapid rise of applications employing artificial intelligence (AI). AI is becoming prevalent, and to meet this demand, big tech companies such as Microsoft Corporation (NASDAQ:MSFT) (Redmond, Washington), Google Incorporated (Mountainview, California) and Apple Incorporated (NASDAQ:AAPL) (Cupertino, California) are scrambling to build AI-enabled data centers. And as is also becoming apparent, these data centers cost lots of money. Recently, Microsoft announced that it would spend $80 billion on AI-enabled data centers in the company's fiscal year 2025, with more than half of this being spent in the U.S.
Microsoft's fiscal 2025 ends in June, and the company is keeping pace with its plans, having spent $20 billion on data centers in the first quarter.
AI requires enormous computing power and lots of energy. The drive toward this technology has seen the price of these the latest data centers increase drastically. Microsoft is the largest backer of OpenAI, developer of the popular ChatGPT. In May last year, Microsoft announced that it was investing $3.3 billion on an AI-enabled data center in Mount Pleasant, Wisconsin. Construction on Phase I of the data center kicked off a few months later.
Recently, Microsoft said that that Phase I of the Mount Pleasant facility would be built as planned and ready for operations in 2026. However, the company is pressing the pause button on early construction work for Phase II, which is in design review as Microsoft evaluates how new technologies would help operations. The data center employs the latest technologies, including a closed-loop water cooling system that does not require additional water once operational.
Microsoft also will be using renewable energy at the data center, partnering with National Grid plc (NYSE:NGG) (London, England) to build a 250-megawatt solar project in Wisconsin that will begin operating in 2027. Subscribers to Industrial Info's Global Market Intelligence (GMI) Industrial Manufacturing and Power project databases can learn more by viewing the reports on the Phase I data center and solar projects.
With so much riding on one data center, it's easy to see how $80 billion could easily be spent across the world. In total, Industrial Info is tracking more than $54 billion of active Microsoft data center projects in the U.S., although it is almost certain that not all of these will be built as planned. Globally, this number grows to more than $83 billion worth of active projects being tracked for the company.
But outside of the U.S., where is the other half of Microsoft's $80 billion to be spent? "We intend to invest more than $35 billion in 14 countries within three years to build trusted and secure AI and cloud data center infrastructure," Microsoft President Brad Smith said in a blog post. "This is part of a global infrastructure that now reaches 40 countries."
In North America, Microsoft will be actively spending in Mexico and Canada in addition to the U.S. Microsoft is in the process of setting up a Mexican hub for its Azure cloud computing software and has opened the first of three AI-enabled hyperscale data centers in Querétaro state. A second building is under construction and expected to begin operating in early 2027. Plans call for a third data center in the region as well. Subscribers to Industrial Info's Industrial Manufacturing Project Database can learn more by viewing the project report.
Three grassroot Microsoft data centers are under construction in Canada's Quebec province. Subscribers can click here to learn more.
Subscribers to Industrial Info's GMI Database can click here to view reports for all of the projects discussed in this article and click here for the related plant profiles.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 trillion (USD).
Microsoft's fiscal 2025 ends in June, and the company is keeping pace with its plans, having spent $20 billion on data centers in the first quarter.
AI requires enormous computing power and lots of energy. The drive toward this technology has seen the price of these the latest data centers increase drastically. Microsoft is the largest backer of OpenAI, developer of the popular ChatGPT. In May last year, Microsoft announced that it was investing $3.3 billion on an AI-enabled data center in Mount Pleasant, Wisconsin. Construction on Phase I of the data center kicked off a few months later.
Recently, Microsoft said that that Phase I of the Mount Pleasant facility would be built as planned and ready for operations in 2026. However, the company is pressing the pause button on early construction work for Phase II, which is in design review as Microsoft evaluates how new technologies would help operations. The data center employs the latest technologies, including a closed-loop water cooling system that does not require additional water once operational.
Microsoft also will be using renewable energy at the data center, partnering with National Grid plc (NYSE:NGG) (London, England) to build a 250-megawatt solar project in Wisconsin that will begin operating in 2027. Subscribers to Industrial Info's Global Market Intelligence (GMI) Industrial Manufacturing and Power project databases can learn more by viewing the reports on the Phase I data center and solar projects.
With so much riding on one data center, it's easy to see how $80 billion could easily be spent across the world. In total, Industrial Info is tracking more than $54 billion of active Microsoft data center projects in the U.S., although it is almost certain that not all of these will be built as planned. Globally, this number grows to more than $83 billion worth of active projects being tracked for the company.
But outside of the U.S., where is the other half of Microsoft's $80 billion to be spent? "We intend to invest more than $35 billion in 14 countries within three years to build trusted and secure AI and cloud data center infrastructure," Microsoft President Brad Smith said in a blog post. "This is part of a global infrastructure that now reaches 40 countries."
In North America, Microsoft will be actively spending in Mexico and Canada in addition to the U.S. Microsoft is in the process of setting up a Mexican hub for its Azure cloud computing software and has opened the first of three AI-enabled hyperscale data centers in Querétaro state. A second building is under construction and expected to begin operating in early 2027. Plans call for a third data center in the region as well. Subscribers to Industrial Info's Industrial Manufacturing Project Database can learn more by viewing the project report.
Three grassroot Microsoft data centers are under construction in Canada's Quebec province. Subscribers can click here to learn more.
Subscribers to Industrial Info's GMI Database can click here to view reports for all of the projects discussed in this article and click here for the related plant profiles.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 trillion (USD).
