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Microsoft expects some AI capacity constraints this quarter
Despite cancelling some data center leases last quarter, Microsoft said it is currently seeing more demand for AI capacity than it planned.
Microsoft’s EVP and CFO Amy Hood said during the company’s fiscal 2025 third-quarter earnings call Wednesday the company may face AI capacity constraints as early as June because demand is higher than its data centers can handle. The timing of Hood’s statement is interesting because Microsoft has reportedly cancelled multiple data center leases this year. Microsoft CEO Satya Nadella said at the top of the earnings call the company opened data centers across 10 new countries and four new continents during this past quarter.
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