Microsoft scales back AI data center expansion amid AI spending boom

Cutting corners: Microsoft and all other Big Tech counterparts have been pouring billions into AI infrastructure, building massive data centers to fuel the next generation of artificial intelligence. However, new developments suggest the company may be reassessing the scale of its spending – at least in some areas.
According to investment firm TD Cowen, Microsoft has recently canceled leases for data center capacity in the U.S., amounting to several hundred megawatts – roughly the equivalent of two large data centers. This move comes despite the company’s previously announced plans to invest over $80 billion in AI and cloud infrastructure during its current fiscal year.
Redmond could just have canceled its data center leases for very mundane, understandable reasons, so while the lease cancellations could just be