Microsoft has reportedly canceled data center leases amid shifting infrastructure priorities
TD Cowen analysts suggest lease deferrals reflect oversupply vs demand
Microsoft doesn’t deny the report but says it’s investing $80 billion in infrastructure
We recently reported Microsoft had cancelled leases with at least two private data center operators in the US, totaling “a couple hundred megawatts,” and how the company was also not converting “so-called statements of qualifications into leases,” according to claims from TD Cowen analysts.
Shortly after that news broke, Microsoft pulled out of a $12 billion deal with CoreWeave (the “WeWork of AI”), passing on buying more data center capacity from the AI hyperscaler. That option was snapped up by OpenAI, but as it counts Microsoft as its biggest backer, it was essentially paying CoreWeave with Microsoft money!
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