Microsoft Shelves AI Data-Center Deals Amid Signs of Oversupply
Skepticism is growing over the billions of dollars US tech firms have been channeling into AI infrastructure due to slow payoffs. Microsoft has scrapped leases for sizeable data center capacity in the U.S., suggesting a potential oversupply at the tech giant as it builds out artificial intelligence infrastructure to meet a possible surge in demand, TD Cowen said. The company's plan to invest over $80 billion in AI and cloud capacity this fiscal year remains on track, but lease cancellations may indicate lower demand or strategic adjustments.
- This sudden shift in Microsoft's data center strategy could serve as a warning sign for the broader tech industry, where investors have been pouring billions into AI infrastructure with expectations of rapid returns.
- What implications might this oversupply of AI data-center capacity have on the global market, particularly if other major players follow suit and scale back their investments?