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Microsoft Scales Back Global Data Center Projects, Raising Questions About AI Demand

Moomoo 24/7 ·  Apr 3 18:28

Bloomberg reports that Microsoft Corp. is scaling back its data center projects globally, potentially signaling a reevaluation of its plans for building server farms crucial to AI and cloud computing. According to sources familiar with the matter, the tech giant has recently suspended discussions or delayed development of data center sites in several locations, including Indonesia, the UK, Australia, and multiple U.S. states such as Illinois, North Dakota, and Wisconsin.The report notes that it's unclear whether this pullback is due to anticipated reduced demand or temporary construction challenges like power and building material shortages. Some investors view this retrenchment as an indication that projected AI service purchases may not justify Microsoft's extensive investments in server farms.

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