Microsoft has pulled back on data center projects around the globe, Bloomberg stories, suggesting that the corporate is cautious of increasing its cloud computing infrastructure too quickly.
Microsoft has halted talks for or delayed improvement websites of knowledge facilities within the U.Okay., Australia, North Dakota, Wisconsin, and Illinois, per Bloomberg. A spokesperson informed the publication that Microsoft makes its plans years upfront and that the adjustments display “the flexibleness of [its] technique.”
As recently as February, Microsoft reiterated earlier plans to allocate greater than $80 billion of its money to capital expenditures in 2025, primarily AI information facilities. As Bloomberg factors out in its piece, it is exhausting to know the way a lot of the corporate’s current pullback displays its expectations of diminished demand versus short-term building challenges, resembling shortages of energy and constructing supplies.
Microsoft beforehand stated that it might shift its information middle growth focus for 2025 from new building to becoming current services with servers and different computing gear.
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