Microsoft has said the spending is crucial to overcoming supply constraints that have hampered its ability to meet soaring AI demand. The fiscal first-quarter capital expenditure estimate of $30 billion surpassed analysts' expectations of $23.75 billion, according to Visible Alpha data.

Microsoft Corp. said it will spend more than $30 billion in the current quarter to build out the data centers powering its artificial intelligence services.Investors, applauding accelerating growth in the company’s cloud-computing unit,

Shares in the tech giant jumped after earnings came in above estimates. CEO Satya Nadella said that cloud and AI continue to drive the company's growth. Microsoft stock surged in after-hours trading on Wednesday after the tech giant beat analysts' expectations for another straight quarter.