Microsoft has lost business due to computing power shortages, and plans to expand its data center capacity by more than three times in the future.
1 days ago
According to people familiar with the matter, Microsoft (MSFT.O) plans to significantly expand its data center scale, with global data center capacity exceeding 38 gigawatts by 2032—more than tripling from the current approximately 12 gigawatts. The initiative aims to ease computing power shortages driven by the rapid growth of AI and cloud services in recent years. Microsoft had previously turned down some AI and cloud service business due to insufficient capacity, insiders added. The roadmap includes data centers built and leased by Microsoft itself, but excludes computing resources rented from "novel cloud service providers" like CoreWeave. The relevant plans may still be adjusted based on customer demand and technological changes. Microsoft’s latest fiscal year capital expenditure reached $145 billion, and analysts expect this spending to continue growing in the coming years. Microsoft had paused some data center construction before, leading to limited computing power supply and prompting some customers to switch to competitors. Documents show Microsoft once restricted new cloud service subscriptions in key regions across the U.S. and Europe. Microsoft stated it is accelerating data center construction.
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