Microsoft has stopped or delayed several data projects, reflecting the recalibration of how and where it creates an infrastructure to support artificial intelligence and cloud services, according to Bloomberg.
Development activity was included in the country or suspended in the country, including Indonesia, Great Britain and Australia, as well as in the US states Illinois, North Dakota and Wisconsin. People who are familiar with this matter have said that the changes include negotiations or delay in construction in many places.
Microsoft’s relationship and Openi placed it as the main host for AI services and investors follow the company’s investment as a signal of future demand. However, it remains unclear where the sweater is liable for weaker than demand than the limitation on the side of the offer or the redistribution of resources. Some analysts believe that this may indicate that the planned application for many workload has long justified earlier expenditure plans.
In recent weeks, worries about the data center have had effects on technological markets, especially for the chip. Nvidia, whose products are the central point of AI deployment, was 16.9% in stock in a given year and Microsoft’s shares fell by 9% this year.
Microsoft spokesman responsible for concerns said: “We are planning the capacity of the data center that we need years in advance to ensure sufficient infrastructure in the right places. Since AI AI demand continues to grow and our data center has been presented to expand, the changes we have made show the flexibility of our layer.”
One affected place is located between London and Cambridge in the UK, where Microsoft reported with DDE from interviews to rent a property promoted to its suitability for the NVIDIA infrastructure. A similar pause took place at a proposed place near Chicago. In both cases, the familiar acts refused to be named.
According to the CEO of the letter Michael Intrator, Microsoft has retreated from the agreement and gained another capacity from the Coreweave cloud provider. He did not assume the number of impacts, but said that Coreweave has since established the buyer for the capacity earned for Microsoft.
In Indonesia, the construction was suspended in the parts of the campus near Jakarta, while in Wisconsin there was also an expansion effort in the Move Pleanant facility. The site was visited by President Joe Biden in 2023 and has already spent $ 262 million during the early development, with about $ 40 million assigned to concrete, compliance Bloomberg.
Negotiations on a separate facility in northern Dakota were also stored. Applied Digital, which originally discussed the lease of Microsoft website, said that delay in negotiation caused the penetration of an exclusive window. SENCE has secured funding from Macquarie Asset Management and now negotiates with other potential tenants. “Over the past year, we have learned that the Hyperscaler’s contractual process is very thorough,” said Digital CEO Wes Cummins during the January earnings.
In London in the UK, Microsoft has been involved in interviewing the space in the 210-Megawatt Data Center Docklands in ADA Infrastructure since the postponed, the sources said. This site is now shown by other stakeholders. The parent company ADA, Ares Management, refused how.
The positive side of Microsoft said it is determined on the $ 3.3 billion project in Wisconsin, which is expected to start operations next year. In addition, Jakarta’s spokesperson also confirmed that Indonesia Central Cloud region is still on the way to live in the second quarter of 2025, despite being built in some areas.
Microsoft projects capital expenditure of approximately $ 80 billion for data centers in the current tax year, which ends in June. However, it has indicated that the pace of investment will slow down next year and move from new sets to the site equipment and hardware sites.
Ai infrastructure analyst has intensified on the basis of the claim of the Chinese company Deepseek, which announced the AI AI building with a smaller number of resources than to see in the West. Some analysts say that development raises a question about the fact that the future workload of AI will require less computing forces.
In a recent note, TD Cowen analysts estimated that Microsoft has retreated back to projects representing about two gigawatts of potential data center capacity in the US and Europe. They appreciated this step towards the mismatch between current demand and affordable infrastructure, as well as the apparent Microsoft decision to hand over some of the opportunities introduced by OpenI.
Openai, currently worth $ 300 billion, monitors extensive investments in AI infrastructure through a common company with SoftBank and Oracle. This effort, which could include up to $ 500 billion, can support Openi to move some of its computing needs away from Microsoft, proposed by analysts.
The feeling of industry about the rate of infrastructure growth is also cautious. In March, the chairman of Alibaba Joe Tsai warned of the potential bubble of the data center and noted that the offer could exceed short -term AI.
Intrator Coreweave described Microsoft’s approach as one to its circumstances. “Loans are located and their relationship with Openai has just changed,” he said. “So it is reasonable that it would be some noise.”
Ed Socia, director of the market intelligence company DataCentrehawk, said that companies revise their priorities at rising costs and logistics delays. “You may have thought at first that one data center project would be the fastest speed on the market, but then you realize that the work, the supply chain and energy supply were not as fast as you thought,” he said. “Then you want to move in the short -term horizon to focus on other markets.”
(Figure from Microsoft, YouTube)