In a blog post, Smith outlined the company’s “golden opportunity” to invest in infrastructure to support AI, likening the importance of the technology to the invention of electricity.
Half of the proposed $40 billion investment will go towards building out capacity in the US, Smith revealed, with Microsoft moving to build a “foundation for America’s economic success for the next quarter century”.
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“AI promises to drive innovation and boost productivity in every sector of the economy,” Smith wrote. “The US is poised to stand at the forefront of this new technology wave, especially if it doubles down on its strengths and effectively partners internationally.”
Microsoft is already working on projects across the US, such as data centres in St. Joe Farm and LaPorte in Indiana, a $3.3 billion effort in Wisconsin, and facilities built using wood in Virginia.
Smith, however, wants the incoming Trump administration to support its scaling efforts, suggesting the Republican government can “build on the foundational ideas set for AI policy during President Trump’s first term”.
The Microsoft president called on the incoming administration to expand federal investments in AI research and make federal data and computing resources more accessible.
“More funding for basic research at the National Science Foundation and through our universities is one good place to start,” Smith wrote.
During his first term, President Trump approved an executive order designed to strengthen the US’ AI efforts.
However, Trump looks to be tightening the purse strings in his second administration, including an Elon Musk-led cost-cutting ‘department’ and a potential cut of federal subsidies for semiconductor firms — a pledge that has seen the Commerce Department scramble to finalise agreements with chip firms before Trump takes office on January 20.
Smith warned in his blog post that potential US inaction could lead to China taking advantage.
“The best response for the US is not to complain about the competition but to ensure we win the race ahead,” Smith wrote. “This will require that we move quickly and effectively to promote American AI as a superior alternative. And it will need the involvement and support of American allies and friends.
“As a nation, we have a solid AI technology foundation fueled by the world’s most robust and innovative private sector. With a thoughtful approach to government policy, we can sustain our leadership through well-funded basic research at the nation’s universities and broad support for private sector innovation.”
Beyond the US, Microsoft has plans to build data centres all over the world, including projects in Spain, Japan, Italy, Mexico, South Korea, Thailand, and the UK, among others.
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