🖼 🔌 Microsoft scales back data center expansion in the US and Europe, involving 2 gigawatts of power capacity. According to a report by TD Cowen analysts, Microsoft has abandoned several data... with a total power consumption of 2 gigawatts in the United States and Europe in the past six months.

🔌 Microsoft Scales Back Data Center Expansion in US and Europe, Involving 2 Gigawatts of Power Capacity

According to a report by TD Cowen analysts, Microsoft has abandoned multiple data center projects in the United States and Europe that would have consumed a total of 2 gigawatts of power over the past six months. The main reason is an oversupply relative to current demand forecasts. This move includes postponing and canceling some existing data center leases in the past month. Analyses point out that a key factor in Microsoft's reduction of new capacity leasing is its decision to no longer provide additional training workload support for ChatGPT developer OpenAI. The report also mentions that Google (Alphabet) and Meta Platforms are stepping in, in the international market and the US domestic market respectively, to fill some of the capacity gaps left by Microsoft. Although Microsoft plans to invest over $80 billion in artificial intelligence and cloud capacity in the current fiscal year, market concerns are growing over the slow returns on high AI investments and the rise of low-cost competitors.

(Reuters)

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