Over half of the investment is reserved for infrastructure. Microsoft President Brad Smith frames AI investment as key to economic growth.

Microsoft says it plans to spend $80 billion on building AI data centers in the 2025 financial year, a significant increase on last year.

Many companies and brands have begun shifting to more sustainable practices in recent years. Microsoft has long been leading the charge, pledging to be carbon negative by 2030. And it's now added another tactic in the fight for sustainability: building data centers made of wood and other low-carbon materials.