Microsoft has pulled back on data center projects around the globe, Bloomberg reviews, suggesting that the corporate is cautious of increasing its cloud computing infrastructure too quickly.
Microsoft has halted talks for or delayed growth websites of knowledge facilities within the U.Okay., Australia, North Dakota, Wisconsin, and Illinois, per Bloomberg. A spokesperson advised the publication that Microsoft makes its plans years prematurely and that the modifications show “the pliability of [its] technique.”
As recently as February, Microsoft reiterated earlier plans to allocate greater than $80 billion of its money to capital expenditures in 2025, primarily AI information facilities. As Bloomberg factors out in its piece, it’s laborious to know the way a lot of the corporate’s current pullback displays its expectations of diminished demand versus momentary development challenges, reminiscent of shortages of energy and constructing supplies.
Microsoft beforehand mentioned that it will shift its information heart growth focus for 2025 from new development to becoming current amenities with servers and different computing gear.