Microsoft has scaled back on its global data center developments, according to Bloomberg, signaling caution in avoiding rapid expansion of its cloud computing resources. The company has either suspended negotiations or delayed project progress at planned data center locations in regions such as the UK, Australia, North Dakota, Wisconsin, and Illinois. A Microsoft representative informed Bloomberg that the firm’s planning cycles extend several years, indicating these schedule adjustments reflect strategic flexibility rather than abandonment.
As recently as February, Microsoft reaffirmed its intention to dedicate over $80 billion toward capital investments in 2025, largely targeting AI-oriented data centers. Bloomberg has noted that distinguishing between concerns of softened demand and short-term logistical barriers like power supply or construction material shortages is challenging at this stage.
Earlier, Microsoft had announced a shift in its 2025 data center growth strategy, planning to prioritize equipping existing facilities with new servers and computing hardware, rather than constructing entirely new buildings.