Microsoft has started cancelling leases for large data centre capacity in the United States. The tech company has cancelled leases for a few hundred megawatts of capacity.
Investment bank TD Cowen reported this, and according to a report, it received information about this from Microsoft suppliers.
Experts from TD Cowen say that this measure could raise concerns about whether Microsoft is not building more AI computer capacity than it needs in the long term. The tech company is also the largest investor in OpenAI, behind chatbot ChatGPT.
In addition, according to the investment bank, Microsoft has stopped converting agreements that usually lead to formal leases. Other large tech companies, such as Facebook parent Meta, are said to have taken similar measures to save costs.
Microsoft said Monday that it would maintain its previously reported spending target of $80 billion for expanding data centres in the current fiscal year. “While we may strategically adjust or change the pace of our infrastructure in some regions, we will continue to grow strongly across all regions,” a spokesperson said.
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