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Microsoft cancels some of its AI data center leases | TechCrunch

Feb 25, 2025 - techcrunch.com
Microsoft is reportedly reducing its data center footprint by canceling leases with multiple providers, amounting to a "couple hundred megawatts" of capacity, equivalent to about two data centers. The reason for this move is unclear, but it raises questions about whether Microsoft is adjusting its expectations for future AI demand. This decision contrasts with the broader industry trend, which is moving towards expansion.

In contrast to Microsoft's actions, the industry is seeing significant investments in data centers. In January, a $20 billion data center funding initiative was announced by incoming president Donald Trump, led by Emirati billionaire Hussain Sajwani. Additionally, OpenAI, Oracle, and SoftBank revealed the Stargate project, which aims to invest up to $500 billion in data centers for OpenAI. TechCrunch has reached out to Microsoft for further information.

Key takeaways:

  • Microsoft is reportedly reducing its data center footprint by canceling leases totaling a couple hundred megawatts of capacity.
  • The reason for Microsoft's decision is unclear, but it raises questions about the company's expectations for future AI demand.
  • The rest of the industry appears to be expanding, with initiatives like a $20 billion data center funding led by Hussain Sajwani and a $500 billion project called Stargate by OpenAI, Oracle, and SoftBank.
  • TechCrunch has reached out to Microsoft for more information regarding their decision.
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