Microsoft is reportedly planning a significant expansion of its global data centre infrastructure, with the technology giant targeting approximately 38 gigawatts of capacity by 2032, according to a report by Bloomberg News citing people familiar with the matter.

The planned expansion would represent more than a threefold increase from Microsoft’s current data centre capacity of around 12 gigawatts, reflecting the company’s continued investment in infrastructure to support the rapid growth of artificial intelligence and cloud-based services.

Of its existing capacity, approximately 2 gigawatts are currently dedicated to AI-specific chips. However, Bloomberg reported that this proportion is expected to increase substantially, with AI-focused infrastructure projected to account for around one-third of Microsoft’s planned 38-gigawatt capacity.

The expansion comes as major global technology companies continue to invest heavily in data centres and advanced computing infrastructure to meet growing demand for generative AI services. Platforms and applications powered by artificial intelligence require substantial computing capacity, driving increased investment across the technology sector.

Microsoft’s growing infrastructure requirements are closely linked to the expansion of its AI and cloud businesses, including services such as Copilot. The company previously forecast stronger-than-expected growth in its cloud business, providing further indications that its significant investments in artificial intelligence infrastructure are beginning to generate returns.

The technology giant is expected to continue committing substantial capital towards expanding its infrastructure. Microsoft has projected capital expenditure of approximately US$50 billion for the first quarter of fiscal 2027 and around US$175 billion for the 2026 calendar year.

The company is also reportedly considering longer-term arrangements for data centre capacity. According to the report, Microsoft plans to extend the duration of certain data centre leases to 25 years from the previous 15-year period, a move that could reduce the level of capital expenditure reported annually.

Microsoft had not immediately responded to a request for comment regarding the reported expansion plans.

The proposed increase in data centre capacity underscores the scale of investment currently taking place across the global technology industry as companies compete to secure the computing infrastructure required to support the next phase of growth in artificial intelligence and cloud computing.