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Microsoft pulls back on data centers from Chicago to Jakarta
Microsoft Corp. has halted negotiations for data center space at a site near Chicago, according to a person familiar with the talks.
Microsoft recently withdrew from negotiations to lease space between London and Cambridge in the UK at a site being marketed for its ability to host advanced Nvidia chips, according to people familiar with the talks, who requested anonymity to discuss a private matter. In late March, Alibaba Group Holding Ltd. Chairman Joe Tsai warned of a potential bubble forming in data center construction, arguing that the pace of the buildout may outstrip initial demand for AI services. Ed Socia, a director at the industry intelligence firm datacenterHawk, said cloud companies are tweaking their server farm plans in an effort to cut costs and prioritize projects that can come online quicker.
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