Microsoft to invest $80bn in AI data centres to counter China’s influence in Africa, Asia

Brad Smith, Microsoft’s vice-chairman and president, says the technology company plans to invest $80 billion in artificial intelligence (AI)-enabled data centres globally in 2025.

In a blog post on January 3, Smith said the move aims to solidify the tech giant’s leadership in both artificial intelligence and cloud computing.

He said the investment will accelerate the global development and deployment of advanced AI models and cloud-based applications, with more than half allocated to the United States.

“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,” Smith said.

According to the vice-chairman, in 2024, Microsoft announced plans to invest $35 billion within three years to establish AI and cloud data centres across 14 countries.

He said the initiatives will target regions influenced by China’s Belt and Road Initiative.

China’s Belt and Road Initiative is a strategy by the country to invest in infrastructure that connect Asia to Africa and Europe through land and maritime networks.

In 2018, former President Muhammadu Buhari signed the Belt and Road cooperation agreement with China.

Also, Smith compared China’s current approach to AI to its dominance in telecommunications, achieved through government subsidies.

The vice-chairman expressed concerns that China’s approach, including subsidised access to critical technologies like chips and AI infrastructure, could potentially impact the global AI landscape.

To counter China’s influence, Smith emphasised the “trust, privacy, and security” of Microsoft’s AI technology, positioning the company as a strong contender in the global AI market.

He also highlighted Microsoft’s commitment to developing AI systems that prioritise cybersecurity, privacy, digital safety, and responsible AI practices.

Smith added that many United States companies, including Microsoft, have invested heavily in building AI that is “more trustworthy than most products from China”.

The vice-chairman said the Chinese government will spend public funds on international subsidies to support the adoption of the Asian country’s technology, especially in places like Africa, Asia, and Latin America.

However, Smith said it will be difficult for China to match United States’ private sector investments and international capital funds.