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Microsoft cancels some of its AI data center leases

Microsoft is reportedly shrinking its information middle footprint.

The tech large has canceled leases with a number of information middle suppliers that complete a “couple hundred megawatts” of capability, in accordance with Bloomberg, which cited a memo from funding financial institution TD Cowen. This complete represents the equal of about two information facilities.

The rationale for Microsoft’s transfer is unclear however raises broader query if the corporate is resetting expectations for future AI demand, Bloomberg famous.

The remainder of the business appears to be heading within the different course. Originally of January, incoming president Donald Trump introduced a $20 billion information middle funding initiative led by Emirati billionaire businessman Hussain Sajwani. Later in January, OpenAI, Oracle, and SoftBank introduced Stargate, a undertaking that might funnel as much as $500 billion into information facilities for OpenAI.

iinfoai reached out to Microsoft for extra info.

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