Microsoft is scaling back its data centre expansion plans globally, with several projects delayed or halted across multiple countries including the US, UK, Indonesia, and Australia, reported Bloomberg.
The changes suggest a reassessment of the company’s strategy for supporting cloud computing and AI infrastructure.
The software giant has recently ceased negotiations or postponed development in locations including Indonesia, the UK, Australia, and the US, reported the publication citing people familiar with the situation.
Microsoft has “acknowledged” adjustments to its data centre strategy, but specifics on most projects have not been disclosed, the report added.
A spokesperson was quoted by the publication as saying: “We plan our data centre capacity needs years in advance to ensure we have sufficient infrastructure in the right places.
“As AI demand continues to grow, and our data centre presence continues to expand, the changes we have made demonstrates the flexibility of our strategy.”
In the UK, Microsoft retreated from talks to lease a site between London and Cambridge, which had been touted for its capability to host advanced Nvidia chips. Similarly, plans for a data centre near Chicago, US have been suspended.
CoreWeave CEO Michael Intrator said in an interview that Microsoft, which had previously leased surplus cloud-computing capacity from CoreWeave, recently backed out of plans to acquire more.
However, Intrator didn’t specify how many projects were impacted or their locations, but mentioned that CoreWeave has secured another buyer for the capacity.
Despite the delays, Microsoft stated that it remains committed to its $3.3bn investment in the Wisconsin site in the US. The facility is expected to go live in 2026.
The company has reiterated its commitment to investing approximately $80bn in data centre construction for the fiscal year ending in June, with a subsequent year focusing on outfitting existing facilities rather than new builds.
In March 2025, Reuters reported that Microsoft plans to establish its first cloud region in Malaysia, by the second quarter of 2025. The new cloud region will feature three data centres.
“Microsoft reassesses global data centre expansion” was originally created and published by Verdict, a GlobalData owned brand.
https://finance.yahoo.com/news/microsoft-reassesses-global-data-centre-112757986.html
