
A huge investment in computers
On the size of 3M, updates to the electrical grid, and an announcement from Microsoft of extraordinary size
Microsoft is planning to spend $80 billion on data centers before the end of the fiscal year -- an amount that ought to make people sit up and take notice. As an infrastructure project, it's huge.
â– $80 billion is more than the $65 billion in electrical grid upgrades promised by the Bipartisan Infrastructure Bill. It's comparable in scale to one of our biggest industries -- roughly the value of net aerospace exports from the US.
â– It's more than the market capitalizations of businesses that are household names, like Ferrari, US Bank, Marriott, BP, or 3M. Most notably, $80 billion is more than the gross domestic products of at least seven states.
â– But Microsoft says it "is on track to invest approximately $80 billion to build out AI-enabled datacenters to train AI models and deploy AI and cloud-based applications around the world". AI is the subject of immense hype and enormous amounts of overstatement. But $80 billion is an extraordinary amount of real money.
â– If the figures are true (and as a publicly traded company, Microsoft is subject to reporting requirements that will bear them out), it's an investment -- or perhaps a speculation -- of historic proportions.