Microsoft is reportedly shrinking its data center footprint.
The tech giant has canceled leases with multiple data center providers that total a “couple hundred megawatts” of capacity, according to Bloomberg, which cited a memo from investment bank TD Cowen. This total represents the equivalent of about two data centers.
The reason for Microsoft’s move is unclear but raises broader question if the company is resetting expectations for future AI demand, Bloomberg noted.
The rest of the industry seems to be heading in the other direction. At the beginning of January, incoming president Donald Trump announced a $20 billion data center funding initiative led by Emirati billionaire businessman Hussain Sajwani. Later in January, OpenAI, Oracle, and SoftBank announced Stargate, a project that would funnel up to $500 billion into data centers for OpenAI.
TechCrunch reached out to Microsoft for more information.
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