Microsoft is making some unexpected moves in its AI infrastructure strategy. According to a memo from investment bank TD Cowen, cited by Bloomberg, the tech giant has canceled leases for multiple data centers, totaling a few hundred megawatts of capacity—roughly the equivalent of two full-scale facilities.
While Microsoft hasn’t publicly shared the reasoning behind this decision, the move raises speculation about whether the company is reassessing its AI growth projections.
Interestingly, this comes at a time when the broader tech industry is charging full speed ahead with massive investments in AI and data centers. In early January, then-President-elect Donald Trump announced a $20 billion data center funding initiative led by Emirati billionaire Hussain Sajwani. Later that month, OpenAI, Oracle, and SoftBank unveiled Stargate, a groundbreaking project that could pump as much as $500 billion into AI-focused data center infrastructure.
So, what’s Microsoft’s play here? Is the company being cautious about AI’s long-term scalability, or is it reallocating resources for an even bigger strategy? Microsoft has yet to comment, but the tech world is watching closely.
Microsoft Rethinks AI Data Center Strategy, Cancels Major Leases
