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Microsoft reportedly pulls back on its data center plans
Microsoft has reportedly pulled back on data center projects around the world, suggesting that the company is wary of overexpanding.
Microsoft has pulled back on data center projects around the world, Bloomberg reports, suggesting that the company is wary of expanding its cloud computing infrastructure too rapidly. As recently as February, Microsoft reiterated earlier plans to allocate more than $80 billion of its cash to capital expenditures in 2025, primarily AI data centers. As Bloomberg points out in its piece, it’s hard to know how much of the company’s recent pullback reflects its expectations of diminished demand versus temporary construction challenges, such as shortages of power and building materials.
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