Analysts flag possible slowdown in Microsoft's AI data-centre leases, raising attention of investors
The HinduAn analyst note flagging a possible slowdown by Microsoft in leasing for data centre capacity grabbed the market's attention on Monday, lending credence to skepticism among investors worried that the AI-led stock-market boom might be overdone. TD Cowen analysts in a note Friday said the tech giant had scrapped leases for sizeable data centre capacity in the United States, suggesting potential oversupply as it builds out artificial intelligence infrastructure. The brokerage, citing its supply chain checks, said Microsoft has cancelled leases totaling "a couple of hundred megawatts" of capacity with at least two private data-centre operators, the analysts led by Michael Elias said. Microsoft had also paused converting statement of qualifications, or precursors to formal leases, TD Cowen analysts said, adding that other tech firms including Meta Platforms had previously made similar moves to lower capital spending.
History of this topic
New Data-Center Property Investment Signals AI Boom
Live MintDiscover Related
